As a seasoned researcher with a decade-long experience in observing and analyzing market trends, I can confidently say that this current Bitcoin correction is indeed a test of patience for many new investors. However, it is important to remember that investing, whether in traditional stocks or cryptocurrencies, is often a long game. Six months may seem like an eternity on the surface, but in the grand scheme of things, it’s a blink-and-you-miss-it moment for seasoned investors.
From my analysis perspective, it appears that the macro indicators suggest Bitcoin ($BTC) might be nearing the end, or could have already reached the bottom of this extended period of sideways and declining prices, which has now lasted approximately six months.
A game of patience
As a novice cryptocurrency investor navigating the Bitcoin market, these recent months might have tested your patience to the limit. It’s understandable that some may have chosen to sell their Bitcoin (BTC) holdings, particularly if they entered the market when Bitcoin was nearing its peak of around $74,000.
As an analyst, I’d like to highlight that many investors might not fully grasp this, but even traditional stock market trading is essentially a test of patience. However, it’s essential to note that the crypto market exhibits volatility far greater than the stock market, which means significant fluctuations occur more frequently. In the realm of investing, six months can be surprisingly short, given the potential long-term nature of these endeavors.
It seems increasingly possible that Bitcoin may have reached or is very close to the end of its prolonged decline, despite rumors on social media about major entities dumping their holdings.
Sellers and buyers
It’s accurate to say that the selling of Spot Bitcoin ETFs has been consistently happening. For eight consecutive days now, these ETFs have experienced net outflows, with Friday being no exception. Institutional or private investors sold off a significant amount of 3,030 Bitcoins from these funds.
On the other hand, this needs to be evaluated alongside Michael Saylor’s Microstrategy considering another purchase, as well as the enigmatic buyer ‘Mr 100’, who could potentially be a sovereign wealth fund, consistently buying Bitcoin in large amounts of approximately 100 BTC at once. In just the first seven days of September, he even acquired 2000 BTC.
$BTC in short term descending channel
Examining the brief-term Bitcoin ($BTC) graph, we notice the price oscillating within a falling channel. Despite this chart pattern typically suggesting bearishness due to its continuous series of decreasing highs and lows, a sudden surge beyond this channel could signal a shift in the trend towards bullishness.
When Bitcoin’s price approaches the upper boundary of its current range, it might be rejected once more, leading to another minor peak. Since the support level at around $51,000 isn’t too far away, there’s a chance we might see another dip in price.
Macro indicators suggest a coming trend change
On a broader weekly perspective, I observe that the bull flag pattern remains intact. A brief dip to test the $51,000 support level has occurred, suggesting that it’s only a matter of time before the Bitcoin price either ascends back to the peak of the flag or breaks below its bottom.
At the base of the weekly chart, the Relative Strength Index shows a pattern of lower highs and lows. Yet, the orange line signifies significant points of support and resistance that stretch over many years. If this support remains firm, and there’s a rebound, breaking the downward trend line might signal the start of a shift in trends.
By examining the chart where the Stochastic RSI is placed at the bottom, it’s noticeable that the indicator lines appear to be hitting the base once more. This suggests that over the next week or so, these lines might start climbing upwards again. We’ve already seen two false signals, so a third instance could potentially bring about strong momentum that propels the price of $BTC into a clear upward trajectory.
Read More
Sorry. No data so far.
2024-09-09 12:06