Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Bitcoin has recorded losses of 16% in sixteen days. The market seems to be fearful as soon as extra, particularly as BTC dropped beneath $40k. The Crypto Fear and Greed Index, at press time, stood at 20 to indicate excessive worry. Even so, the market construction stays bullish on the upper timeframe charts.
Bitcoin could possibly be primed to push in direction of $52k within the weeks to come back. In reality, knowledge from Coinglass confirmed that just about $440 million {dollars} value of positions, with $159 million of them on Bitcoin, had been liquidated.
Bitcoin – 1 Day Chart
Source: BTC/USDT on TradingView
Bitcoin had been on a downtrend since November when the value posted a excessive of $69k. In mid-January, a swing low at $32.9k was seen. Since then, a decrease low has not been set. Moreover, the downtrend’s decrease excessive at $44.5k was crushed in early February and BTC registered a better low thereafter at $34k.
These developments advised that Bitcoin’s downtrend had ended. At press time, the market construction remained bullish. The cyan field at $38k represents a bullish order block, an space on the chart from the place the value has seen a bullish impulse transfer.
In the subsequent few days, it’s attainable for BTC to dip to this space and even as little as $37.5k to hunt for liquidity earlier than a transfer upward. As issues stand, BTC appears to be like able to climb larger as soon as once more, with $48k and $52k as heavy resistance zones to the north.
Rationale
Source: BTC/USDT on TradingView
The RSI didn’t counsel both a bullish or bearish pattern in progress for the higher a part of the previous two months. Especially because the momentum oscillated across the impartial 50 line. There was sturdy bullishness in direction of the top of March. This has now modified to strongly bearish because the RSI dropped to 37.5.
The Awesome Oscillator additionally dropped beneath the zero line. It has been flashing pink bars on its histogram over the previous couple of weeks to indicate rising bearish momentum.
The OBV, then again, has been on an uptrend since mid-January. The lack of a big dip within the OBV over the previous week reveals {that a} transfer in direction of $37.5k would seemingly be for getting.
Conclusion
Despite the worry out there, the technicals regarded pretty good for Bitcoin’s bulls. The value chart confirmed the bullish construction of the previous two months remains to be intact. Unless BTC drops beneath $37k-$37.5k, the bulls can have the higher hand.
