After experiencing a decline of approximately 11%, or around $11,000, the price of Bitcoin (BTC) has rebounded robustly from a trendline that extends back to April 2021. So far, it’s managed to hold its ground. What can we anticipate for the leading cryptocurrency next?
Market in prime bearish mode
As a crypto investor, I found myself on edge when news broke that approximately $6.5 billion in Bitcoin could flood the market from the Silk Road case. With this potential influx in mind, many investors and traders swiftly opted to offload their holdings, triggering a steep sell-off that drove the Bitcoin price down to $91,300.
In a market that had been leaning towards pessimism, anticipating favorable employment data to be revealed later on Friday, this piece of news was disseminated. The paradox here is that the market views such positive news as negative because it reduces the likelihood of interest rate reductions, and consequently, fewer incentives for risky investments may follow.
The Fear and Greed Index serves as a valuable tool for gauging market sentiment, and its current Neutral 50 reading indicates a significant deterioration in sentiment compared to the Greed level of 69 that was recorded on Thursday.
Ascending trendline holds beautifully
On a 4-hour scale for Bitcoin ($BTC), an upward trendline served as a strong base during the recent price drop. Currently, the price is encountering resistance, but considering the ongoing initial rebound, bulls are optimistic about breaching this level and potentially reaching new highs.
Referring to the base of the graph, the Relative Strength Indicator (RSI) offers quite a dependable signal on the 4-hour interval. Typically, when the indicator line reaches or falls below the 30.00 oversold threshold, there is often a rebound to occur.
It’s likely that Bitcoin’s price will maintain its current trend up until January 20th, given that Donald Trump will assume the presidency on that date. However, this could also trigger a sell-off as investors react to the news, but beyond this point, there are expected to be numerous positive factors influencing Bitcoin’s price. With the rest of the year to go and considering the typical 3-year bull market cycle, 2025 may see significant growth for Bitcoin.
The view on the weekly chart
The weekly Bitcoin chart indicates that the trendline has been the main attraction thus far, with several weekly candlewicks attempting to touch it but bouncing off. For the bulls, they hope this pattern persists.
At the base of the graph, the Stochastic RSI may soon reverse direction. A rebound from the 50.00 mark is a potential scenario. If the indicator lines continue descending to the bottom, it might take them around four to six weeks to reach there. Once the blue line intersects above the red line again and both are above the 20 level, strong upward price movement may ensue.
Read More
- ‘Violent Night 2’ Writers Discuss Who Could Star as Mrs. Claus
- Jahan Loh and Stash Team Up for ‘Namecaps: Spaceman’ Exhibition at Central Chidlom
- Zamna In Tulum Is Taking Your Festival Experience To The Next Level
- RSR PREDICTION. RSR cryptocurrency
- AMBUSH Delves Into Its Archives for New Book With Rizzoli
- Dragon Ball Z’s Spinoff Daima Is Officially Available In English, And I Think Fans Should Be Watching For One Major Reason
- Lil Yachty Leads Milli Point Two’s FW25 Campaign
- ‘Utter Madness.’ The Latest Update On House Of The Dragon Season 3 Has Me Both Pumped And Bummed
- ‘Fast & Furious’ Feud Continues After Vin Diesel’s “Petty” Gesture at Golden Globes
- Sky Force actor Veer Pahariya gifts his locket to paparazzo; debutant’s sweet gesture goes viral: WATCH
2025-01-10 14:08