Bitcoin fell below $70,000 for the first time in a long time, influenced by factors such as rising inflation concerns in the US, increasing expectations of a Fed interest rate hike, declines
Bitcoin fell below $70,000 for the first time in a long time, influenced by factors such as rising inflation concerns in the US, increasing expectations of a Fed interest rate hike, declines and uncertainty in technology stocks, ETF outflows, and liquidations in leveraged trading.
This level is the lowest in the last three months, and BTC is in a very critical position. The decline in BTC could continue, or it could rise.
At this point, market analyst Omkar Godbole stated that technical indicators point to downside risks.
The analyst noted that Bitcoin’s weekly MACD (Moving Average Convergence Divergence) indicator fell below zero this week. He stated that this signals a weakening of upward momentum, adding that if the weekly candlestick remains negative until Sunday’s close, the bearish signal will be confirmed.
Analyzing historical MACD signals, the analyst wrote that since November 2012, the weekly MACD in Bitcoin has generated bearish signals 24 times.
The analyst noted that in 13 of these 24 bearish MACD signals, BTC experienced a drop of more than 16% before rebounding. According to the analyst, if this pattern repeats, BTC could fall from its current level of $69,000 to approximately $57,700.
However, the analyst also warns that the MACD indicator alone cannot definitively predict Bitcoin’s future price movements.
CryptoQuant analyst MacD, offering a more specific prediction, stated that as long as the $64,200 level is maintained, BTC’s uptrend will continue. According to the analyst, this level is a critical support point for the market’s direction.
“…Personally, I think Bitcoin’s bull market is still valid as long as it doesn’t fall below the $64,200 level.”
The analyst noted that the losses currently being experienced by short-term investors have reached levels seen at significant lows in past bull markets. He also emphasized that periods of extreme fear in the market have historically coincided with the formation of significant price lows.
“…The main lows of the market have always been formed in an environment of intense fear.”
*This is not investment advice.
Continue Reading: Critical Thresholds for Bitcoin (BTC) Revealed! Is the Bull Market in Danger, or Will It Continue Where It Left Off? Two Analysts Explain!
