As an experienced analyst, I believe that the current sideways and slightly downward trend in Bitcoin’s price is not uncommon in bull markets. The adage “Markets can remain irrational longer than you can remain solvent” holds true here, as Bitcoin has been trading in this range for over two months now. This period of consolidation has formed important support levels below the current price, which will act as a solid base for future price action.
Bitcoin‘s price has been moving sideways with a slight downward trend for the past ten days, hovering just above the strong support level at $67,000. It seems inevitable that a surprising and sudden surge in Bitcoin’s value is on the horizon, though no one can predict exactly when it will occur.
Sideways and downwards
The wisdom of the remark “Markets can stay illogical more than you can afford to keep investing” – a quote often linked to John Maynard Keynes – holds true when considering Bitcoin’s current price fluctuations.
Bitcoin’s price movement has been relatively stable yet declining for over ten days now, and this trend began after Bitcoin reached its peak price of $64,863 on March 14th. For novice investors, these past few months may have felt lengthy, leading some to sell their holdings, particularly when the value dipped as low as $56,600.
Price structure is being built
Over the past couple of months, Bitcoin’s price action has followed a familiar pattern and played a crucial role in shaping the current price structure around the 2021 bull market high. This well-defined price structure serves as a solid foundation for Bitcoin to mount its next significant price advance. As an analyst, I find this development both intriguing and promising.
In the weekly chart displayed above, noticeable support levels have emerged beneath Bitcoin’s ($BTC) price. As Bitcoin maintains its horizontal movement, it is constructing this crucial structure.
Inflation causing concern
It was widely anticipated that Bitcoin would have begun its next surge in value by now. However, given the renewed anxiety over inflation, it’s more plausible that the Federal Reserve will maintain current interest rates, or possibly even increase them should conditions deteriorate further.
In a climate with elevated interest rates and restricted access to liquidity, Bitcoin’s growth may face significant challenges. The lack of sufficient liquidity can hinder the asset’s potential surge, making it more likely for its price to remain stagnant or move in a narrow range rather than experiencing substantial upward momentum.
A right-translated cycle?
It’s possible that rather than the frequently debated left-shifted bull market in Bitcoin that some have talked about on social media, we might be observing a right-shifted bull market. This type of market extension could prolong the usual Bitcoin bull market cycle of approximately 3 years.
Based on the present market signals, it seems plausible that the next Bitcoin rally is imminent. The timing is merely a question of when it will occur.
Read More
- EUR INR PREDICTION
- DEXE PREDICTION. DEXE cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- Shilpa Shetty’s Mumbai restaurant under radar after BMW car worth Rs 80 lakh gets stolen from parking; REPORT
- Is Red One a Box-Office Success?
- TikTok’s Appeal to Overturn Ban Bill Denied by Federal Court
- EXCLUSIVE: Decoding the importance of suspense around cameos in cinematic universe films
- RSR PREDICTION. RSR cryptocurrency
- NBC’s New Thriller Starring Manifest, La Brea Stars Sets Premiere Date: Details
- ‘Anyone And Everyone Is Welcome’: Melissa Rauch Talks Upcoming Big Bang Theory Reunions Ahead of Mayim Bialik’s Arrival On Night Court
2024-05-30 13:04