The Cryptocurrency Market Looks Fragile – There was significant volatility in the cryptocurrency market and Bitcoin price yesterday. However, the market has yet to choose a clear direction, Bitcoin continues to move above $27,000. However, the history of Bitcoin cycles is hardly encouraging in the short term for the future.
This Bitcoin price analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.
Bitcoin price drops 3.5% in 24 hours
Another day in the red for the course of Bitcoin. In fact, the course 3.5% drop in 24 hoursand over 6% in one week :
The bears seem to be regaining control of Bitcoin. The price shows a 10% drop in one month. However, the course is still in 24.5% increase in three monthsand over 60% in six months. For its part, the BTC/ETH pair 1.5% drop in one week.
The comparison with the last cycles looks unfavorable for the price of Bitcoin in the short term
For the moment, the Bitcoin price is following a cycle that starts with the halving. Then the price experiences a rise (bullmarket) before finding a top and entering a bear market (bear market). Based on the last two cycles, Bitcoin price may have found the market low around $15,500 :
If we continue to follow the last two cycles, the continuation seems a little less pleasant than the trend known since the beginning of January. Indeed, here, the course could score a local top or continue lateralizing for several long weeks. Investors will probably have to be patient before finding a bullish period like the one known in 2017 or 2021.
However, the cycle could be totally different. For that, the buyers would have to show up, and break the polarity area around $30,000.
Is Bitcoin price losing support at $27,500?
Yesterday, the course was done reject at the downtrendline. The price has blocked against the institutional bias (EMA 9/EMA 18) and it seems to be losing the rack at $27,500 :
The price is once again heading towards the bracket at $26,700. If buyers do not react quickly, the price could change momentum in 4H, and mark an “M top”. The RSI is still below the bearish trendlinebut it could change momentum if it closes above 50.
The price of Bitcoin follows cycles punctuated by the halving. For now, the cycle is running its course, and the local upside may be over. A period of lateralization, or a fall could now take place while waiting for the halving. Will this cycle be different? The buyers are going to have to push to break the resistance zone around $30,000.
Do you want to delegate the trading of some of your cryptocurrencies? Through his optimized trading serviceCryptoTrader allows you to maximize your profits in a simple, diversified and fully automated way.