Despite price support break, Bitcoin remains bullish. Although Bitcoin has experienced a recent decline. The overall picture for the cryptocurrency remains positive. The cryptocurrency plummeted below its support level of $57,653. Which corresponded to the coin’s October 23 low, paving the way for a further decline.
Lennard Neo, head of research at Stack Funds, told CoinDesk in a WhatsApp chat that the market. Has experienced an 18 percent drop from its all-time high. “But we’ve been here before,” Neo said. “We were here in September and June this year.” “Bitcoin is still trading within the upward channel,” says a cryptocurrency analyst.
MintingM, a cryptocurrency asset management business based in Mumbai, India, stated. That the cryptocurrency is still in a definite uptrend. With higher highs and lower lows on a daily time frame. As can be seen in the chart below, the upward or bullish channel, which represents higher highs and lower lows. It can be identified by trendlines connecting the lows of July 20 and September 29. And the highs of June 30 and September 7. The downward or bearish channel, which represents lower highs and lower lows. Can be identified by trendlines connecting the lows of July 20 and September 7.
Earlier this month, bitcoin reached a new all-time high of $68,954 and was trading near $56,000 at the time of publication.
Not much has happened to drive up the price of bitcoin
According to Stack Funds’ Neo, “there hasn’t been a significant catalyst to force bitcoin’s price upward. And whales [big investors] haven’t been accumulating as they have in previous bull runs. Which paints a picture of how global macro worries have kept prices contained.”
According to Matthew Dibb, chief operating officer and co-founder of Stack Funds. The recent dip signals a normal bull market correction that could last for a longer period of time. A growing number of people are concerned that inflationary pressures will lead to a decline in risk assets, including bitcoin. While we are confident that it will happen at some time. We do not feel it is imminent,” Dibb added.
The behavior of traditional markets suggests the possibility of a more significant decline. After President Joe Biden reappointed Jerome Powell to his position as chairman of the Federal Reserve on Monday. Betting that the central bank will raise interest rates more quickly in order to keep inflation under control increased. Following Powell’s reappointment, stocks in the United States lost some of their early gains, while gold and silver plummeted. Early Tuesday, the dollar index reached a 16-month high of 96.60, while the yield on two-year Treasury notes. In the United States surged to 0.63 percent, the highest level since March 20.
As despite price support break, Bitcoin shifted from support around $57,653 to resistance on Monday. With a strong closing below the previous day’s low. Furthermore, the collapse is supported by a reading of the relative strength index (RSI). That is below 50, indicating a bearish trend.
MintingM estimates that the immediate support will be $53,000, while Stack Funds’. Neo estimates that the primary support zones will be $50,000 and $51,000.