Investors have been observing carefully the crypto market in the recent days due to the drop of Bitcoin's value. The biggest cryptocurrency has gone through a bearish trend and it has broken its key support level which was previously established by the 50-day Moving Average at 27,200 USD. Even though the context is bearish, there could still be a good chance for the bulls, according to the trader and analyst Ali. He points to the TD Sequential Indicator and the Relative Strength Index (RSI) of the 4-hour Bitcoin chart, which both show a buy signal. While Bitcoin has endured a period of volatility, it has recently been rejected at a resistance level of 28,000 USD.
Ali has vowed that if Bitcoin can hold above the $26,000 support level, there could be a rise to either 26,860 USD or 27,570 USD, however, the current scenario might lead Bitcoin to a further decrease at 25,200 USD. Recent reports from QCP Capital express some hope though, claiming that Bitcoin has kept from getting damaged further due to the close below 26,500. On the other hand, Bitcoin has presented a negative divergence in the momentum indicators, suggesting to the analysts at the Singapore-based firm a possible break at 25,000 USD and even 20,000-22,000 in the near future. Nevertheless, the low-end of 20,000-22,000 USD has been seen by the analysts as a high-conviction, medium-term buy zone with which they have been selling physically settled puts previously.
The market’s response in terms of implied volatility will be decisive in shaping the future trend, as an increase in volatility might lead to a fall in the value not only of Bitcoin, but also of other risk assets. Even though this could become an issue of concern for investors who have seen Bitcoin reach all-time highs in this year, the volatility bound to appear could also create opportunities for traders expert and experienced enough to cope with the ups and downs of the market.
At this moment, Bitcoin is trading at 26,300 USD, presenting a 2.1% decrease in the last 24 hours. Investors should be aware of the bearish indicators pointing towards a potential collapse, as well as hopeful ones that would suggest a sudden upswing in the near future.
Austin Bailey
- 2023-05-12
Investors Cautious of Crypto Market as Bitcoin Drops Value
Investors have been cautious these days as Bitcoin has gone through a bearish trend. The TD Sequential Indicator and the Relative Strength Index (RSI) show a potential buy signal. However, there could be a break at 25,000 USD and even 20,000-22,000 in the near future.
