These simple factors show that Bitcoin has bottomed out, but the bulls are still not there
After several failed attempts to overcome the strong resistance Bitcoin is facing at around $ 6. 900, the benchmark cryptocurrency is again in a sideways movement at around $ 6. 600 like.
This phase of consolidation is also taking place against the backdrop of a bull market in traditional markets, as BTC is fully exposed to the downward movement of the stock market, but not all of its upward movements.
Although today's decoupling has not favored BTC investors, it is important to keep in mind that analysts are now finding that several fundamental and technical factors indicate that the bottom has been reached.
This may be optimistic from a long-term perspective, but it does not mean that BTC will not experience another significant downward movement in the near future.
Bitcoin enters the phase of firm consolidation
At the time of writing, BTC is trading in 6. 650 dollars. However, this sideways move could be short-lived as analysts find that BTC can expect further downward moves in the near future.
Mac, a popular cryptanalyst on Twitter, talked about it in a recent tweet, explaining that although all signs of BTC lows were in the 3rd 000 – Dollar region as long-term low suggest he still believes that bitcoin is back in the 4th 000 – Dollar region could fall behind.
“Yes, I believe that the BTC low has been reached (3600 dollars). If this liquidation cascade has not led to us under 3. 600 dollars come, then there will be no dumping here. OI is lower. MF on spot higher than swaps. However, this does not mean that we will not test again 4350 dollars ” he explained.
Yes I do think $ BTC bottom is in ($ 3600)
If that liquidation cascade didn't manage to get us lower than $ 3600, no dump here will.
OI is lower.
MF on spot a higher than swaps.
That does not mean we won't retest $ 4350 s though.
– Mac ❄️🐺 (@MacnBTC) March 26, 2020
The analysts agree: Movement towards 4. 000 Dollar could be imminent
Mac is not the only analyst who is currently moving back into the 4th. 000 – Dollar region observed. TraderXO – another well-respected crypto trader and analyst – spoke about Bitcoin's technical weakness in a recent post, stating that it was moving down towards 4 in the short term. 900 dollar strives.
$ BTC – Will be shorting any rejection off gray
Possible price may very well see one more leg up
Invalidation = close above yearly open.
Currently positioned short from 67 s – 1 / 3rd size
R: R rough guide – adjust to suit your own risk params – I often scale in and out pic.twitter.com/vwR08 IccQQ
– TraderXO (@ TraderX0X0) March 26, 2020
It is clear that analysts are largely assuming that Bitcoin will experience further downward momentum in the near future, but it is important to note that the possibility that the 3rd 000 – dollar region could be a strong low in the long run, is a bullish sign from a macroeconomic perspective.
Proof of text: newsbtc
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