As a seasoned analyst with years of experience navigating the cryptocurrency market, I find myself cautiously bearish on Bitcoin at this juncture. Having been through numerous bull and bear cycles, I have learned to trust neither the peaks nor the troughs blindly.
Bitcoin has seen a downturn after being turned away at both its 100-day and 200-day moving averages, suggesting that sellers currently hold more power and may push prices down further.
Technical Analysis
By Shayan
The Daily Chart
Examining Bitcoin’s daily graph more closely reveals that following a significant rise towards the $64K level where the 100-day and 200-day moving averages are located, there was increased selling force, causing the price to be pushed back.
This situation led to a retreat towards these shattered moving averages, hinting at the start of a downward trend that leans toward pessimism. The market’s behavior shows that sellers are dominating, with the 100-day Moving Average dropping beneath the 200-day Moving Average to create what is known as a “death cross,” which strengthens the bearish perspective.
At present, Bitcoin is encountering a significant support area marked by the 0.5 to 0.618 Fibonacci ratios. This area might offer a brief respite from the ongoing decline, possibly causing a phase of price stabilization or sideways movement.
The 4-Hour Chart
Looking at the 4-hour timeframe, Bitcoin’s value noticeably dropped after it was rejected at the significant resistance of $64K, resulting in a consistent downtrend.
The inability to reach new record highs has caused a clear shift towards a bearish market trend, as we see both lower peaks (highs) and troughs (lows), indicating heavy selling. Notably, Bitcoin is currently at a significant support area, which is demarcated by the 0.5 and 0.618 Fibonacci retracement levels.
As a crypto investor, if the sellers manage to drive the price below the current range, I’m cautious and keeping an eye on the crucial $50K support level. If this level holds strong, I anticipate a potential bullish rebound that could lead us toward the psychological $60K resistance. However, if Bitcoin finds solid support at the present level, it could signal a positive trend.
On-chain Analysis
By Shayan
Looking at statistics from Bitcoin’s futures market can offer useful information about investor sentiment and help predict price fluctuations. A crucial factor to consider here is the Taker Buy/Sell Ratio, which shows if traders are predominantly buying or selling orders.
The graph demonstrates a substantial decrease in the ratio following Bitcoin’s rejection at the $64K mark. This downward trend suggests an increase in selling orders within the market, mirroring a wider distributive attitude among traders.
As a crypto investor, I’m seeing a growing sense of pessimism in the market as traders are gearing up for potential price drops and a breakdown, possibly reaching the $50K support level. The escalating aggressive selling suggests a brief extension of the bearish phase we’re currently experiencing.
Read More
- Skull and Bones: Navigating the Quest for Extra Teeth in the Game
- Uncovering the Mystery of Red King Players in Clash Royale – What Reddit Users Have to Say
- UFO PREDICTION. UFO cryptocurrency
- Finding Resources in Palworld: Tips from the Community
- BONE PREDICTION. BONE cryptocurrency
- The Last Epoch Dilemma: Confronting the Gold Dupe Crisis
- Discovering the Infinite Power: The Abiotic Factor that Could Change Everything
- AAVE PREDICTION. AAVE cryptocurrency
- Gaming News: Like a Dragon: Infinite Wealth’s Dondoko Island Takes Expansion to New Heights
- Unveiling the Mystery of Palworld IVs: What Redditors Have to Say
2024-09-06 17:34