As a seasoned researcher with over two decades of experience in financial markets, I’ve seen my fair share of bull and bear cycles. The recent dip in Bitcoin (BTC) has been intriguing, to say the least. After a brief resurgence above $57,000, it seems we’re back to navigating the choppy waters of sub-$55,000.
Following a significant decline to a seven-month low earlier this week, Bitcoin (BTC) displayed strength and surpassed the $57,000 mark again on Tuesday, which has ignited optimism in those who believe in its growth. These investors are hoping that the most severe part of the dip has passed.
In recent hours, there’s been a noticeable drop of around 3% in the primary cryptocurrency, which is moving once more towards the $54,900 region. This could indicate that the current downward trend might persist.
BTC’s CME Gap & Bearish Indicators
As a crypto investor, I’ve been closely watching the market, and according to my analysis following Rekt Capital, Bitcoin has repeatedly pulled back after failing to hold its ground at elevated levels. Notably, Bitcoin is teetering on the edge of filling the CME Gap, which lies between $53,700 and $54,600. This could potentially signal a significant price movement.
Although the present price of $54,900 is quite close to this potential gap, it’s unclear if this gap will be fully filled due to doubts about its significance, given its modest size.
The analyst pondered if this drop was just a temporary test of the $55,800 support level, a point that had also been the lowest in early July. This could be a sign of market volatility.
If it’s necessary to bridge the CME Gap, making that move earlier rather than later, especially since the price is still near, might prove to be a wise decision, as per Rekt’s assessment.
Enhancing the bearish signals, Julio Moreno, the Chief Researcher at data analysis company CryptoQuant, emphasized an intriguing finding concerning the Bull-Bear Market Cycle Indicator.
Since early January 2023, Moreno’s bear phase indicator hadn’t been triggered – until now. This specific signal has previously pointed towards bear phases that aligned with significant market occurrences such as the COVID-driven market sell-off in March 2020 and the Chinese mining ban in May 2021. Remarkably, these instances correctly foresaw bearish trends, starting from November 2021.
$50,000 Bitcoin Support At Risk?
Material Indicators, a crypto company, has also expressed bearish outlooks for Bitcoin’s short-term price, causing some concern about Bitcoin’s ongoing bullish trend. In this situation, it appears that Bitcoin supporters are being challenged, and the company highlights a level of BTC bids holding steady near $50,000.
If the $50,000 level doesn’t stay strong, there could be a warning sign as they prepare for a possible drop that may reach a significant support level around $45,000.
Based on current market trends and insights from market analyst Jesse Olson, there’s a potential sell signal emerging on Bitcoin’s weekly Heikin Ashi chart. If this signal is verified, it would represent the fifth instance of such a signal since 2021, suggesting a notable change in market behavior and dynamics.
As time goes on, it’s becoming more clear that Bitcoin needs to show strong upward movement in the coming days to combat the worsening downturn we’re experiencing now.
Reaching the historic peak of $73,700, as seen in March, may depend on continued positive trends in the market that can counteract existing market stresses.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-08-08 15:04