Bitcoin has been trying hard for months to reclaim its all-time high of $73,000, but various factors keep pushing the price down. Since its peak in March, Bitcoin has been making lower highs and lower lows, which suggests that buyers are losing strength and bears are gaining control. Recently, there was a slight shift with a higher low on the charts, which might indicate a potential trend reversal.
What is coming next and how can you be prepared? Read on to find out.
The market is showing mixed signals. Some indicators suggest that Bitcoin could drop further to around $48,000, while others hint at an upcoming trend reversal, with a new all-time high near $90,000 in the next few months.
In early August, Bitcoin hit $49,500 twice in one day, and it’s currently trading at $54,868, with its nearest support level at $52,546. However, this support is not very strong, having only briefly held Bitcoin from falling further.
The Impact of a Rare Death Cross
One major concern is the formation of a rare death cross—a lagging indicator that often stirs fear in the market. A similar crossover was seen after Bitcoin touched $48,000 in early August, acting as resistance that kept Bitcoin below $62,000 and forced it to consolidate for two weeks.
Despite the bearish signals, there are positive signs as well. Both the RSI and MACD indicators are showing increased bullish momentum. Bitcoin has already crossed the first resistance of the 20-day moving average, which is now acting as support. The completion of a cup and handle pattern, a bullish signal, suggests that Bitcoin may be poised for a breakout. Historical trends from previous all-time highs also support the possibility of Bitcoin reaching $90,000.
Traders are becoming more bullish, as shown by the rising long-short ratio for Bitcoin. Recent liquidation data supports this trend, with $73.08 million worth of short positions and $30.12 million in longs being liquidated in the last 24 hours, totaling $103.21 million removed from the market.
Short-term price gains may be limited, but bullish sentiment is slowly growing. September has historically been a bearish month for Bitcoin, but October often brings substantial gains. Amid current market fear, whales are taking advantage by accumulating Bitcoin, preparing themselves for the anticipated next big bull run.
Is the market finally turning bullish for Bitcoin? Let us know your take on the current trends and potential outcomes.
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