As a seasoned analyst with years of market experience under my belt, I’ve seen my fair share of Bitcoin’s volatile rollercoaster rides. This latest plunge has been no exception, giving investors quite the ride. The current price hovering above $60,000 is a precarious balance, and it seems we might see one more sweep below this level before we head higher again.
As a crypto investor, I can’t help but feel the tension creeping back in as Bitcoin (BTC) has dropped approximately $4,200 over the last 3 days, now hovering around $60,000. The question on everyone’s mind is: Can this downward trend continue or will we see one more dip before Bitcoin rises again?
Bitcoin investors given quite a ride
The continuous fluctuations in Bitcoin’s value seem highly probable in causing any less resilient investors to relinquish their holdings. In essence, Bitcoin is akin to a restless bull riding experience, provoking a broad spectrum of emotions among its investors.
Yesterday, I observed a shift in the Fear and Greed Index, moving from a neutral reading of 49 to a state of fear as it dropped by 10 points today. This indicates a growing sense of caution within the market.
One more sweep below $60,000?
The dip may not be over yet. There are still some pockets of liquidity below $60,000, and market makers may want to sweep these first before potentially allowing the price to rise again. This liquidity stretches down to around $59,300. That said, on the other side of the coin, a lot more value in liquidations could take place from $61,000 through to $63,000.
For a few days now, there have been withdrawals from U.S. Bitcoin ETFs, which has added to the struggles for the bullish investors, albeit these withdrawals were not substantial. Specifically, they amounted to 299 Bitcoins on Tuesday and 492 Bitcoins on Wednesday.
$BTC breakout in next few days
The daily Bitcoin graph indicates that its price is currently hovering near the midpoint of an ascending bullish formation known as a “bull flag.” This price level is inside a symmetrical triangle, suggesting it’s on the verge of either breaking out or consolidating further in the coming days – a crucial juncture referred to as a “breakout decision.
Based on current market indicators, there’s a strong possibility that prices could increase, as the Short Time Frame Stochastic Relative Strength Indicators (RSI) seem to be reaching their lowest point, preparing to reverse direction and potentially drive upward momentum.
Weekly Stochastic RSI displays perilous possibility
The weekly chart displays a clear picture. The $BTC price is currently holding exactly above the very strong horizontal support at $61,000. However, it’s at the bottom of the chart where the most telling action is taking place. The weekly Stochastic RSI is showing that a cross-down of the indicators is potentially about to happen. If this is confirmed at the end of this week, it would be very bad news for the Bitcoin bulls, given that it would signal strong downside price momentum going forward.
As an analyst, I find myself observing that the upcoming days hold significant importance for Bitcoin’s trajectory. The current indicator lines, if managed skillfully by the bulls, could potentially reverse their course. Whether they succeed or fall short might determine Bitcoin’s price trend for the ensuing fortnight.
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2024-10-10 12:08