Crypto-currency traders had a brief opportunity to take a break and stock on June 16, as the relentless sale of hammered bitcoin (BTC) and the wider market over the past week began to deteriorate despite the continued sell-off in markets traditional.
Data from Cointelegraph Markets Pro and TradingView show that after reaching a high of $ 23,000 in the opening trading hours on June 16, the price of bitcoin slowly declined to a reduced trading volume to 20. $ 765 low.
Here’s what some market analysts are saying about the future outlook for bitcoin, as cryptocurrency traders try to determine if the bottom line is in place or if there are more downsides ahead.
Expect multi-month consolidation at the 200-week MA level.
An analyst and Twitter user called Rekt Capital discussed a macro perspective on bitcoin’s journey over the years and how the past can shed light on the current market situation. published The following chart shows BTC behavior close to its 200-week moving average (MA).
Rekt Capital said,
“If BTC continues to hold the 200 week orange MA as support and the 200 week black EMA figures as resistance… BTC could form an accumulated range here, just as it did in 2018. for several months until even December 2022. ”
If this is the case playing out, then Rush cryptocurrency traders do not need to accumulate BTC. This is a point noted by a cryptocurrency trader and Twitter user called Altcoin Sherpa, which post several charts highlighting the time BTC has spent in previous accumulated phases.
The longest accumulation period observed by Altcoin Sherpa is the 287 day period shown in the chart above. Other examples provided include the 133 days accumulated between November 2018 and April 2019 and the 63 days accumulated between May 2020 and July 2020.
Altcoin Sherpa said,
“You will probably have plenty of time to spare during the accumulation phase. #Bitcoin takes a while to make its bottom and you should probably go out and touch grass instead of trying to grab knives. “
Bitcoin could get $ 25,000 back, if we are lucky
Nebraskaangooner cryptocurrency trader offered a more positive view of the latest bitcoin developments, though available The following chart notes that “the lower Fibonacci level has been reached. »
“Let’s see if the closing day can be strong above the resistance and then we have a chance for the $ 25,000s and maybe the $ 30,000s. For the first time in months, we may finally be ready for the $ 40,000 bounce that everyone was expecting. »
Read also: Further declines are expected, but multiple data points suggest that bitcoin has little value
The RSI gives 1000 bullish signal
TANalyst trader and analyst, also saw a potential bullish signal on the BTC chart. He has published tweeted the following chart, which highlights the recent low in the Relative Strength Index (RSI) 1000.
” #Bitcoin The daily RSI (1000) is below 50 but on low days, BEFORE the Bull runs. Today: RSI (1000) = 49.91. Finish. »
Based on the history of a 1000 RSI score falling below 50, the price of bitcoin may start climbing higher soon.
But perhaps the cryptocurrency educator IncomeSharks came up with the best summary of the current state of the bitcoin market and its confusion for cryptocurrency traders.
#Bitcoin– At a price that no longer makes sense to shorten. But also at a price that nostalgia is still very risky. If strict risk management is not used then this is a major buying area. It’s okay to wait for a trend to develop to start trading again.
—IncomeSharks (@IncomeSharks) June 16, 2022
# Bitcoin- At a price that makes little sense no longer. But also at a price where going far is still very risky. Unless you use strict risk management, this is for the most part an on-the-spot purchase area. It is possible to wait for a trend to develop to start trading again. – IncomeSharks (@IncomeSharks) June 16, 2022
The global capitalization of the cryptocurrency market now stands at $ 905 billion and bitcoin’s dominance rate is 44.3%.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. All investments and trades involve risk, you should do your own research before making a decision.