As a researcher with experience in the crypto markets, I’ve seen firsthand how volatile Bitcoin can be. The recent downtrend in prices and bearish formation have left many traders feeling anxious, but there are still reasons to remain optimistic.
The price of Bitcoin has been decreasing over the past two weeks, and its chart exhibits a predominantly downward trend. Despite a recent uptick in momentum, Bitcoin’s bears still hold the upper hand.
Analysts maintain their optimism despite current setbacks, predicting a significant rise that could elevate the value of the world’s premier digital currency to unprecedented heights.
Bitcoin Forms A “Cup And Handle” Formation In The Weekly Chart
As a crypto investor, I’ve come across MikybullCrypto’s analysis on X where he points out Bitcoin’s “cup and handle” reversal pattern. This technical indication implies a potential surge towards fresh peak prices, which is a promising sign for traders like me, given the recent downward trend and sideways movement that have wiped out some of the gains we saw in March.
The “cup and handle” pattern is a technical analysis tool used by traders to pinpoint potential reversals and validate trend progressions. In this specific instance, according to the trader’s analysis on the weekly chart, the “handle” emerged following the recent price decline from record highs. Prior to this, the “cup” shape took form after the price decrease in 2022 and the subsequent recovery in 2023.
Previously, when the price surpasses the cup’s handle and its upper boundary, it often results in significant price increases. Consequently, if purchasing pressure continues at present rates, the breach above the current range and record high of $73,800 could lead to a dramatic price surge.
As a researcher studying the current trends in the cryptocurrency market, I’ve observed that the price action is continuing to follow a descending channel. Notably, there are distinct resistance levels evident at approximately $66,000 and $72,000. A significant price breakout above these levels, as indicated by the daily chart candlestick formation, could potentially result in renewed demand. This, in turn, might propel the coin to new heights.
Will Miners Dump BTC And Force Prices Lower?
As a researcher studying the cryptocurrency market, I’ve noticed an encouraging trend with the recent bull run. However, it’s important not to overlook the potential threat hiding beneath the surface: a decrease in on-chain activity. Following the surge of transactions on Halving Day due to the Runes protocol launch, transaction fees have been on a downward trend.
Based on YCharts data, the price currently stands at $3.206, a significant drop from its peak of around $128 in April. This decline in value puts additional strain on miners’ income and intensifies the existing pressure on profit margins following the Halving event.
Due to reduced block rewards and falling transaction fees, miners could be compelled to sell some of their Bitcoin to cover expenses. This mass selling could put additional downward pressure on Bitcoin’s price in both the primary and secondary markets.
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2024-05-15 22:16