I strongly believe that Bitcoin’s current price action is unpredictable and requires a careful analysis of various indicators to make informed decisions. While the halving has taken place and a bull market is expected, there are always external factors that can influence the price. As Shakespeare wisely said, “there is many a slip twixt cup and lip.”
Bitcoins enduring another weekly decline, presently holding steady around the $63,000 mark. However, there’s a risk of it falling even lower. From a broader perspective, the outlook remains uncertain.
Shouldn’t the bitcoin price go up?
The halving event has recently transpired, and with the exception of a potential sell-off following the event, the price of Bitcoin ($BTC) is expected to rise as it approaches the final surge of its parabolic bull market phase. Is this not a given outcome?
In observing the world around me, I’m reminded of the wisdom Shakespeare shared through his words, “There are many slides between the cup and lip.” This means that as the cup approaches the destination of reaching the lip to take a drink, there are numerous possibilities for unexpected events or obstacles that could impede its journey.
It’s hard to conceive that the Bitcoin bull market won’t resume after this phase of sideways and declining prices ends.
Monthly stochastic RSI crosses down
From my perspective, taking a step back and looking at the bigger picture of Bitcoin’s price trend on a monthly timeframe, a significant hurdle for price growth has emerged. This manifested as the fast (blue) stochastic RSI line crossing below the slow (red) line in the indicator. This event suggests that a massive surge of momentum could potentially impact Bitcoin’s price negatively and cause it to drop.
From my perspective, the downward trend hasn’t made its appearance just yet, and it might still take some time before it reaches us. For the indicator to confirm the downward trend, both the fast and slow lines need to fall below the 80 level (the upper white dashed line). At this point in time, we are yet to see that happening.
While Shakespeare wisely noted the absence of guarantees, it’s important to remember that a large ship like a supertanker, similarly to the stochastic RSI, can unexpectedly shift course. The stochastic RSI might reverse direction and avoid dipping below 80, thus altering the momentum and taking the market back up.
As an observer, I recommend closely monitoring the weekly stochastic RSI to gauge the direction of momentum. On the weekly chart, the fast line has recently dropped below the 20 mark. Consequently, it’s likely that within the upcoming week or so, the weekly stochastic RSI will rebound and cross back above the 20 level. This potential shift could contribute to a turnaround for the monthly trend as well. However, the next few weeks will provide a clearer perspective on this developing situation.
Strong support at $61,000
From my perspective, disregarding the current trend, the Bitcoins’ price exhibits robust monthly support at the $61,000 mark. The value has rebounded from this level in the past two weeks, and each bounce was met with significant buying activity. A pivotal moment is approaching as either this support holds firm, leading to another price surge, or it weakens, potentially triggering a more substantial correction.
Do your homework
In the end, some investors may purchase Bitcoin (BTC) as a protective measure against the potential devaluation of their wealth stored in traditional fiat currencies held in banks. However, it’s essential to consider which choice – keeping money in the bank or investing in Bitcoin – is more advantageous for them in the long run.
If you’re among those feeling unsure about the topic of Bitcoin, taking the time to research its implications for transaction autonomy, safeguarding assets, and serving as a safety net during bank collapses is highly recommended.
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2024-04-25 16:05