Bitcoin and other cryptocurrencies have recently faced a decline, sparking discussions about the future of these digital assets. Analyst Jelle has provided insights into the current state of Bitcoin, highlighting significant developments and trends.
Bitcoin’s 18-month upward trend is facing significant pressure, as indicated by a lower low on a higher time frame. This stall in bullish momentum has raised concerns among investors about the near future of the cryptocurrency. Stay updated with the latest financial and business news by visiting COINTURK FINANCE.
Despite the challenges, Jelle believes there is still a possibility for recovery. If Bitcoin can swiftly reclaim its previous position, it may mitigate the current downtrend and allow the market to progress without the negative impact of the recent decline. This quick recovery is crucial, as prolonged periods below critical price levels can erode investor confidence and intensify selling pressure.
Jelle also notes that Bitcoin is currently experiencing a daily bullish divergence following a significant sell-off. This means that while Bitcoin’s price has hit new lows, indicators like the Relative Strength Index (RSI) point to higher lows. This divergence suggests that the bearish momentum is weakening and a reversal may be on the horizon. It offers hope to investors that Bitcoin could potentially recover despite the recent downtrend.
Moreover, Bitcoin’s spot market is trading at a significant premium compared to the futures market. This premium indicates strong demand in the spot market and suggests that there is still substantial buying interest in Bitcoin at current prices, despite recent sell-offs.
Reclaiming the $60,000 price level is of utmost importance, according to Jelle. This achievement would send a positive signal and could potentially restore investor confidence. It has the power to influence market sentiment and reignite bullish momentum.
However, there are concerns about Bitcoin losing its 200-day Exponential Moving Average (EMA) at the $57,000 level. The 200-day EMA is a widely observed technical indicator that helps determine long-term trends. Losing this level can be seen as a bearish signal, indicating a potential shift from a bullish to a bearish trend. Nevertheless, the analyst points out that Bitcoin has lost the 200-day EMA before in this cycle. The question remains whether Bitcoin will follow a similar recovery pattern as in the past or if the outcome will be different this time.
Please note that the information provided in this article does not constitute investment advice. It is important for investors to understand that cryptocurrencies are highly volatile and carry risks. Conducting thorough research is essential before making any investment decisions. Stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.
