Cryptocurrency is a form of digital asset which is gaining more and more attention since the beginning of 2021. Bitcoin, a leading crypto-coin, has been trading in a consolidation phase below the $30,000 resistance level. Yet, the bearish pressure caused the 50-day moving average to break around the $28,000 mark. In the short term, if the $25,000 support area doesn't hold, prices could dip to the 200 day moving average located around the $22,000 level.
Should the price jump above the 50-day moving average, it could break the $30,000 resistance level more successfully this time around. In the 4-hour timeframe, the bearish pressure is indicated by the falling of the RSI (Relative Strength Index) values to below 50%. This increases the probability of a lower price continuing in the coming weeks.
Investors have been left wondering whether the bear market has ended, which is why the futures market sentiment is being closely monitored. A metric known as the Taker Buy Sell Ratio is used to determine which side of traders are taking action. Values above 1 signify the long traders have the upper hand, and when it is located below 1, it is a bearish territory. This metric has been running below 1 for the past couple of months, which could be a factor driving Bitcoin's failed attempts to break the $30K resistance level. This bears the evidence of the presence of bear market and indicates a further drop in prices if nothing improves.
Yana Long
- 2023-05-11
Crypto Prices in Bear Territory: Analysis and Forecast
An analysis of the cryptocurrency prices, with particular emphasis on Bitcoin, to determine whether the bear market has ended. We take a look at how the futures markets are being monitored, and what signs are suggesting that the bearish pressure will persist in the coming weeks.
