After a robust rally that pushed Bitcoin (BTC) over the $31,000 stage, the biggest cryptocurrency by market capitalization has misplaced its bullish momentum and retraced to its earlier consolidation stage of $28,400. The retracement has been accompanied by a decline in buying and selling quantity and a lower in market sentiment, which has led some traders to query the sustainability of the latest uptrend.
Is The Bull Trend In Jeopardy For Bitcoin?
According to the dealer and analyst below the pseudonym “CJ,” Bitcoin has confronted weak spot throughout its every day highs, indicating a possible reversal in its bullish development. This has put strain on bulls, who at the moment are carefully monitoring the value motion to determine key assist ranges that should maintain to keep away from an additional value decline.
One such assist stage is the $27,700, which has acted as a robust assist flooring for BTC. If the value had been to interrupt under this stage, it might sign a shift in market sentiment and doubtlessly result in an additional decline in value. According to CJ, if BTC fails to push increased from this stage, it may very well be on the cusp of a big correction for the reason that lows of 16k.
Furthermore, CJ advises that traders, whether or not in a protracted place or not, ought to maintain a detailed eye on the bearish value motion inside the 4-hour and 12-hour Fibonacci Volume Zone (FVG). This zone represents a possible resistance space the place Bitcoin might face promoting strain and doubtlessly reverse its bullish development.
If a bearish value motion is about up inside this zone, CJ suggests it may very well be a chance for traders to enter a brief place. On the opposite hand, if Bitcoin manages to shut again above the $29,980 stage, CJ believes that the cryptocurrency may very well be off to the races, indicating a possible continuation of its bullish development.
Is Not All Bad News For BTC
CryptoCon, a distinguished cryptocurrency analyst, has suggested that it could by no means see a lot decrease Bitcoin costs than $28,000 ever once more. This assertion is predicated on the VWAP (Volume Weighted Average Price), a technical indicator that measures the typical value of Bitcoin over a sure interval, weighted by its buying and selling quantity.
According to CryptoCon, Bitcoin has simply damaged above the VWAP, a bullish sign suggesting a possible reversal within the present development. As lengthy as this breakout is sustained within the quick time period, CryptoCon believes that earlier market cycles point out that the one factor that might take Bitcoin again under $28,000 is a black swan.
On the opposite hand, CryptoCon has identified that whereas Bitcoin has risen 1000’s of {dollars} with out experiencing a wholesome pullback, the three Week Bollinger Bands nonetheless point out {that a} return to the higher band is probably going at present at $35,790, as seen within the chart under.
According to CryptoCon, earlier market cycles have proven that there have been no giant corrections till the higher band was reached, so if CryptoCon’s evaluation is right, it might recommend that Bitcoin is getting into a brand new section of its market cycle, which might doubtlessly result in additional value and investor curiosity improve.
Featured picture from Unsplash, chart from TradingView.com
