Is The Bitcoin Bottom In? Analyst Reveals Key Price Levels To Watch
13 Maggio 2024 - 8:00PM
NEWSBTC
In his latest technical analysis, veteran crypto analyst
Christopher Inks offers a detailed look at the current Bitcoin
market structure through a comprehensive chart analysis. The chart,
recently shared on X, shows Bitcoin’s price movements alongside
several key technical indicators and levels that could signal a
potential reversal from its bearish trend. The analyst illustrates
Bitcoin’s price action with daily candlesticks over the past few
months, pinpointing significant support (S1, S2) and resistance
(R1, R2) levels. As of press time, Bitcoin traded at around the
$63,000 mark, encapsulated by two descending trend lines which
represent a bearish market structure. The Bottom Signal For Bitcoin
“We still want to see a breakout above the noted level to signal a
break in the bearish market structure that began at the ATH,” Inks
stated. This level is of paramount importance because it serves as
a junction of multiple technical elements: the daily pivot point,
the upper descending green resistance line, and the two-month range
equilibrium. Related Reading: Bitcoin On-Chain Activity Nearing
Historic Lows – What This Means For BTC Price According to Inks,
“an impulsive breakout and close above the daily pivot/descending
green resistance/2-month range EQ confluence area will signal that
the low is likely in.” This suggests that overcoming this barrier
could herald the end of the bearish market structure that commenced
from the all-time high. If this resistance breaks, the next major
resistance is located at $65,541. Afterwards, $68,000 could be on
the cards. “Breaking above this level breaks the bearish market
structure from March 13th,” according to Inks. Then, R1 at $69,000
and R2 at around $78,000 could be the next targets. On the
downside, the most crucial support is at $56,522. It represents the
lower boundary that Bitcoin needs to maintain to prevent a new low,
which would exacerbate the bearish sentiment. Related Reading: US
Mega Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC
Drops To $60,000 Inks articulates the importance of this support,
noting, “If we can print a higher low now, which would require a
breakout above the $65.541 level without printing a new low below
$56,522, then that would really add support for the idea that the
bottom is in and a new ATH is incoming.” This statement underlines
the necessity for Bitcoin to hold above this support to avoid
further declines and stabilize within its current range. If BTC
breaks below the pivotal support, the price could be headed below
$56,000 (S1) and $50,90 (S2). Notably, the analysis is supported by
a variety of technical indicators. The Relative Strength Index
(RSI), hovering around the neutral 50 mark, suggests a balancing
act between bullish and bearish forces. The RSI’s position
indicates that the market is neither overbought nor oversold,
leaving room for potential upward movement if bullish signals
strengthen. The Moving Average Convergence Divergence (MACD)
currently shows that the MACD line is below the signal line, a
traditional bearish sign. However, the proximity of these lines
also hints at a possible upcoming bullish crossover, should the
momentum shift. The Stochastic RSI also indicates potential for
movement in either direction but is particularly useful for
identifying when Bitcoin might be entering overbought or oversold
territories, which are critical for predicting short-term price
reversals. Inks also commented on the market’s dynamics, stating,
“The positives of the range are that supply has continued to
decrease throughout the bearish market structure.” This observation
suggests that diminishing supply, paired with maintaining key
support levels, could help stabilize and potentially increase
Bitcoin’s price. At press time, BTC traded at $62,902. Featured
image created with DALL·E, chart from TradingView.com
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