Bitcoin and other cryptocurrencies have been receiving attention lately due to their recent decline. These comments offer insights into the future of cryptocurrencies. Analyst Jelle has shared his thoughts on the current state of Bitcoin, highlighting significant developments and trends.
Bitcoin’s 18-month upward trend is currently facing significant pressure, as confirmed by Jelle. This is indicated by a lower low on a higher time frame. The stall in bullish momentum driving Bitcoin’s price has raised concerns among investors about the cryptocurrency’s near future. For the latest financial and business news, you can visit COINTURK FINANCE.
Despite the current downtrend, Jelle still sees a possibility for recovery. If Bitcoin can quickly regain its previous position, it may help mitigate the decline and allow the market to progress as if it never happened. This swift recovery is crucial, as extended periods below critical price levels can erode investor confidence and increase selling pressure.
Jelle notes that Bitcoin is currently experiencing a daily bullish divergence following a significant sell-off. A bullish divergence occurs when Bitcoin’s price hits new lows, but indicators like the Relative Strength Index (RSI) indicate higher lows. This divergence is often seen as a sign that bearish momentum is weakening and a reversal may be imminent. It offers investors hope that Bitcoin might be on the brink of a recovery despite the recent downtrend.
Furthermore, Bitcoin’s spot market is trading at a significant premium compared to the futures market. This premium suggests strong demand in the spot market and indicates that there is still considerable buying interest in Bitcoin 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. It could also lead to increased market sentiment and renewed bullish momentum.
Another concern is that Bitcoin has lost its 200-day Exponential Moving Average (EMA) at the $57,000 level. The 200-day EMA is a widely watched technical indicator that helps determine long-term trends. Losing this level is considered a bearish signal, suggesting a shift from a bullish to a bearish trend. However, the analyst points out that Bitcoin has lost the 200-day EMA in this cycle before. The question remains whether Bitcoin will follow a similar recovery pattern as in the past or if the outcome will be different this time.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research. You can stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.