Is the Crypto Market on the Verge of a Showdown?
The cryptocurrency market has seen a bullish trend recently, led by Bitcoin and supported by favorable regulations. However, crypto analyst AlanSantana has pointed out that the market is currently in a delicate balance, with technical indicators suggesting a potential showdown between bullish and bearish forces.
Although the overall technical picture appears positive, with rising prices and trading above moving averages, it’s important to remain vigilant. The crypto market is known for its volatility and swift reversals, so things can change quickly.
“While the chart technicals are definitely bullish, things can always change. Change comes after a prolonged period of seeing the same. Change is always present and at work, it can be happening behind the scenes though so it might not be visible on the chart,” said AlanSantana.
Examining Historical Correlations
Looking back at November 2022, when Bitcoin hit a multi-year low, the analyst noted that the technical indicators were overwhelmingly bearish. However, Bitcoin defied these signals and experienced a strong recovery followed by a bullish cycle.
Currently, there is a strong bullish bias in the market, with room for additional growth indicated by the weekly chart. However, there is also a key resistance level being challenged, which was previously a support level in early to mid-2022.
The analyst also highlighted potential bearish signals, such as the recent news of potential criminal charges against Binance. The delayed action by authorities raises concerns about the longevity of Bitcoin’s bullish wave.
Furthermore, there has been an influx of stablecoins into exchanges for buying Bitcoin and other altcoins. However, significant amounts of Bitcoin, Ethereum, and other major altcoins have also been moved into exchanges, suggesting that whales may be preparing to sell, adding a bearish undertone to the market sentiment.
The Bitcoin ETF Hype
The analysis also focused on upcoming events, including the halving event, which historically triggered a correction in Bitcoin’s price before rallying. The analyst cautioned against excessive hype surrounding the spot Bitcoin exchange-traded fund (ETF), drawing parallels with past events like the Ethereum Merge that resulted in bearish outcomes.
“Money. They say billions and billions and billions and billions and more will be coming in due to these ETFs, really? Here is the thing, these ETFs, these ‘conventional trading vehicles’ are not going to be selling Bitcoins to their clients; they are going to be selling shares, coupons, digits on a screen or what not. If they need Bitcoins, they are buying it now or bought them long ago to later use as back-up for their customers funds,” added AlanSantana.
Hot Take: Bitcoin Aims for $38,000
Bitcoin is currently targeting the $38,000 mark as its next milestone. At the time of writing, Bitcoin’s value stands at $37,728 with minimal daily losses. While the market appears poised for further gains, it’s crucial to stay informed about potential changes and bearish signals.
By
By
By
By
By
By