Bitcoin has been struggling really hard to reach its latest all time high at $73,000 for many months. However, every time it tries to go up, various market and non market conditions pull it back. Since its all-time high (ATH) in March, Bitcoin has been making lower highs and lower lows. This pattern suggests that buyers are gradually losing strength, allowing bears to take control. However, there was a slight shift with the most recent lower high; the chart formed a higher low. This change might indicate a potential trend reversal.
Bitcoin’s Battle with Resistance Levels
There are still a lot of negative signals in the market that are suggesting that Bitcoin can go down further towards $48,000. But this is not it, there are others signaling an upcoming trend reversal and bitcoin can create a new all time high around $90,000 in a few months.
In the first week of August, Bitcoin touched the $49,500 mark twice in a single day. And right now, BTC is trading at $54,868 with a nearest support at around $52,546. We can not call it a strong support even though it prevented bitcoin from going down.
The Impact of a Rare Death Cross
One of the biggest concerns as of now is the creation of a rare death cross. It is a lagging indicator for sure, however, it possesses the power to spread fear in the market. We saw a similar crossover after BTC touched $48,000 in the first week of August. This acted as a resistance and stopped Bitcoin from crossing $62,000 and forced it to consolidate in the same area for a fortnight.
Bullish Indicators Signal Possible Trend Reversal
Things are changing for bitcoin now as RSI and MACD both are showing a rise in bullish power. Bitcoin has already crossed the first resistance of moving average 20 and using it as a support now. The cup and handle pattern is finishing up. This is a bullish pattern. Analysis of the data from previous ATHs shows that Bitcoin is poised to create a new All Time High near $90,000 with this rise.
Traders are moving to a strong feeling of bullishness as the long-short ratio for bitcoin shows an increase in the long trades. Daily liquidation data also confirms this. In the last 24 hours, $73.08 M worth of shorts were liquidated with $30.12 M in longs vanishing a total $103.21 M from the market.
In the short term, we can see very little rise in the bitcoin price as the bullish sentiments are slowly growing. September has the history of Bearish market movement however, October has provided huge jumps to BTC in the past. At this movement, where the market is suffering from fear, whales are taking advantage and filling up their bags and getting ready for the actual bull run.
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