Bulls Struggle to Break Free from Bearish Pressure
The price of BTC is currently being restrained by bearish forces, preventing it from surpassing the $25,000 to $26,000 range. Despite a failed attempt to reach $30,000 in August, Bitcoin’s gains had previously halted just below $28,000. Unfortunately, the weak market structure resulted in a decline back to the price level prior to Grayscale’s success in the lawsuit against the SEC.
Bitcoin’s Price Teeters on the Brink of a Bull Run
The live price of Bitcoin is nearing an anticipated bull run, as it manages to hold above the $25,000 support level. However, its upward momentum is currently limited and it is unlikely to experience an immediate recovery. In order to gather liquidity from lower levels, there is a possibility that bulls may need to let go of the $25,000 support and allow BTC price to drop to $24,000 or even $22,000. It is speculated that Bitcoin may extend its downtrend to $15,500 before the bull market begins.
Analyze Bitcoin’s Momentum for Trading Opportunities
Currently, Bitcoin is experiencing sideways trading as indicated by the Moving Average Convergence Divergence (MACD) showing neither a bullish nor bearish outlook. To identify potential trading opportunities, it is crucial to monitor Bitcoin’s reaction to the $25,000 support level. If this support is lost, it may trigger a sell-off to $24,000 and $22,000. Conversely, a climb above the $26,000 resistance level would indicate a bullish trend. Investors are eagerly awaiting a sign to rally behind Bitcoin and potentially achieve gains above $30,000.
Use the Bitcoin-Bear Market Cycle Indicator for Insights
CryptoQuant has introduced a new metric called the Bitcoin-Bear Market Cycle Indicator, which assists investors in identifying different cycles of Bitcoin. This indicator categorizes the market cycle into five phases: overheated bull, bull, early bull, bear, and extreme fear. Currently, Bitcoin is in the bull phase according to this indicator. Additionally, Bitcoin follows four-year cycles linked to miner reward halving events. The previous halving in 2020 paved the way for the 2021 bull run, and the next bull is expected to occur in April, potentially propelling BTC price into the 2024/2025 bull market. Long-term investors can utilize these cycles to plan their investments, buying during the bear market and selling during the peak of the bull market.
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