As an analyst with over two decades of market analysis under my belt, I’ve seen my fair share of bull runs and corrections. The current Bitcoin rally to a new all-time high is nothing short of impressive, but it’s important to remember that every rise must be followed by a fall.
Bitcoin has soared to a record peak, nearing the $90K mark during a vigorous upswing. The confluence of another interest rate reduction by the Federal Reserve and President Trump’s re-election bid have instilled a sense of market optimism, boosting the appetite for risky assets such as Bitcoin.
Technical Analysis
By Shayan
The Daily Chart
On the daily graph, Bitcoin’s price movement shows a strong transition towards a bullish market trend. Lately, it surpassed both the 100-day and 200-day moving averages with considerable force, and hit an all-time high of $90K.
Conversely, the 100-day moving average has moved over the 200-day moving average, indicating a ‘Golden Cross’. This technical signal suggests that the influence of bulls is growing stronger, causing a surge in interest as investors scramble to buy Bitcoin due to fear of missing out (FOMO).
Following this significant increase, the market is predicted to transition into a period of correction or pullback. Important support zones could potentially form around the Fibonacci retracement levels of 0.5 ($74K) to 0.618 ($70K). These levels align with Bitcoin’s previous peak and might offer significant opportunities for profit-taking and re-entry in the short term.
The 4-Hour Chart
On the 4-hour scale, Bitcoin continues within an upward price trend, frequently hitting new record highs followed by slightly higher bottoms, a sign of a robust and thriving bullish movement.
The price recently saw a strong rebound from the channel’s lower boundary near $70K, fueling the push to the new ATH of $90K.
With the cost now touching the upper limit of its trading channel, we’re seeing a phase where prices are stabilizing. In the immediate future, there might be an extended period of selling near this level, leading to a minor adjustment that could bring the price back down to the middle of the channel around $80K.
While the present upward trend seems robust, it’s essential to exercise caution rather than succumbing to the fear of missing out (FOMO). The market frequently presents various chances for tactical entries, and a balanced correction could lay a stronger base for future profits.
On-chain Analysis
By Shayan
As a researcher observing the financial landscape, I’ve noticed an intriguing development in the Bitcoin market – its recent spike to an unprecedented peak of $90K. This milestone has sparked a wave of action among market players, who are now actively cashing out their gains. Notably, Bitcoin miners have been contributing significantly to this selling pressure.
The Miners Position Index (MPI), a tool measuring the level of miner selling activity, has risen above 2, reaching its highest point this year. A reading above 2 generally indicates increased miner selling activity. This sudden increase implies that miners might be unloading a significant amount of their holdings, possibly to meet operational expenses due to Bitcoin’s current high prices.
Due to miners owning a significant portion of Bitcoin’s total supply, if they decide to sell more, it could significantly increase the pressure to sell across the market. This is especially true if there’s also a decrease in demand. In the current situation where investors are already cashing out at all-time high prices, there’s a higher chance of price adjustments or corrections occurring. If the buying side doesn’t provide enough support quickly, the market might experience a more substantial drop as selling continues.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-11-13 17:58