Bitcoin: Why Investors May Reconsider Bitcoin’s July and October Moves


Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different type of recommendation and is solely the opinion of the writer.

  • General, the BTC market construction seemed fairly bearish
  • A Plunge In direction of $14,000 Is Doable Following False Upward Breakout

In anticipation of the discharge of the FOMC minutes on Nov. 23, BTC is again at $16,000 ranges, up 5%. On the time of writing, it’s buying and selling at $16.5k, boosting the remainder of the altcoin market.

The same value rally was seen forward of the November 2-3 FOMC assembly and subsequent fee hike of 75 factors. Nevertheless, BTC has since fallen, coinciding with the implosion of FTX.

learn bitcoin [BTC] value prediction 2023-2024

If historical past have been to repeat itself, the present value rally may very well be nipped within the bud by the continuing FUD over the Genesis chapter. In the long run, BTC might plunge in the direction of $14,000.

Breakout from the Descending Triangle: Will the Bears Acquire the Higher Hand?

Supply: Buying and selling View

Bitcoin From mid-July to mid-November, it traded between $18.5K and $24K. The midpoint of this vary was $21.5 thousand. Nevertheless, since mid-September, BTC has been buying and selling on the decrease facet of the vary and at last broke via the vary help on November ninth.

BTC discovered new help on the 0% Fib stage of $15.5K and examined it 3 times. The extra occasions help or resistance is examined, the extra doubtless it’s to interrupt. On the time of writing, BTC was in a state of value restoration.

BTC’s value motion over the previous two weeks has shaped a descending triangle (white line) and was half of a giant bearish pennant with a flagpole (blue line).

The present bearish triangle additionally resembled the chart sample of the 2 earlier triangles in July and October. In each instances, the value fell after a false breakout to the upside. If historical past repeats itself, BTC might see a brand new help at $14K after breaking the present $15.5K help.

The bearish bias was additionally confirmed by the Relative Energy Index (RSI) of 39. His on stability quantity (OBV) has additionally decreased since September. This reveals that the market construction on the day by day chart nonetheless favors sellers.

Nevertheless, a candlestick closing value on the day by day chart above the 23.6% Fib stage ($16.9K) defeats the bearish bias. Affirmation of an upward breakout can thus coincide with a doable crossing of the Shifting Common Convergence-Divergence (MACD). This may very well be a purchase sign for buyers.

Destructive Sentiment on BTC and Value/Quantity Divergence: Imminent Value Reversal?

Supply: Santimento

Some on-chain indicators present a bearish construction for response to SentryBTC’s general weighted sentiment additional dropped into damaging territory, indicating a bearish outlook.

Furthermore, the latest value enhance was accompanied by a lower in buying and selling quantity. This represents the distinction between value and quantity. Furthermore, it additionally factors to waning shopping for strain, which might undermine any notable positive factors. Due to this fact, the bulls may very well be overwhelmed and BTC might plunge additional within the coming days or perhaps weeks.

BTC buyers ought to comply with the influence of the FOMC minutes and the alleged Genesis chapter available on the market to gauge sentiment and get a greater view of potential value course.

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