Bitcoin and other cryptocurrencies have recently faced criticism and speculation about their future direction. Analyst Jelle has provided insights into the current state of Bitcoin, highlighting significant developments and trends.
Bitcoin’s 18-month upward trend is now under pressure, as confirmed by Jelle. The cryptocurrency has experienced a lower low on a higher time frame, indicating a stall in bullish momentum. This has raised concerns among investors about the near future of Bitcoin. Stay up to date with the latest financial and business news on COINTURK FINANCE.
Despite this, Jelle still sees a possibility for recovery. If Bitcoin can quickly reclaim its previous position, it may counteract the current downtrend and allow the market to progress as if the decline never happened. This swift recovery is crucial, as prolonged periods below critical price levels can damage investor confidence and increase selling pressure.
Jelle also notes that Bitcoin is currently locked in a daily bullish divergence after a significant sell-off. This means that while the price of Bitcoin has hit new lows, indicators like the Relative Strength Index (RSI) suggest higher lows. This divergence indicates a potential reversal of the bearish momentum and offers hope for a recovery despite the recent downtrend.
Additionally, Bitcoin’s spot market is trading at a significant premium compared to the futures market. This suggests strong demand for Bitcoin in the spot market and indicates that there is still considerable buying interest at current prices, despite recent sell-offs.
Reclaiming the $60,000 price level is crucial for Bitcoin, according to Jelle. This achievement would send a positive signal and potentially restore investor confidence. Reaching this critical psychological and technical level could lead to increased market sentiment and renewed bullish momentum.
There is also concern that Bitcoin has lost its 200-day Exponential Moving Average (EMA) at the $57,000 level. This widely watched technical indicator helps determine long-term trends. Losing this level can be seen as a bearish signal, indicating a shift from bullish to bearish overall trend. However, Jelle points out that Bitcoin has previously lost the 200-day EMA in this cycle, raising the question of whether it will follow a similar recovery pattern as in the past or if the outcome will be different this time.
Please note that the information in this article does not constitute investment advice. Cryptocurrencies are highly volatile and carry a high level of risk, so investors should conduct their own research. Follow our news on Telegram, Facebook, Twitter, and Coinmarketcap.
