Imminent bearish reversal on Bitcoin
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Investing.com – Helped by renewed risk appetite, the price is back above $38,000 since yesterday.
Remember that the US markets closed sharply higher, by 1.89% for the and 1.17% for the example.
Thus, between the low of January 24 at $32,980 and yesterday’s high of $38,770, BTC/USD posted a rebound of 17.5% in one week, which at first glance seems very encouraging.
Risk of an imminent bearish reversal in Bitcoin from the daily chart
However, a glance at the daily chart reveals that in reality, a return to the downside may be imminent. Indeed, Bitcoin’s rise in recent days has brought the cryptocurrency into contact with a downtrend line that is blocking all rebounds since last November’s all-time high (see chart attached to this article).
Thus, if history repeats itself, a return to the decline from current lows could be likely. If, on the contrary, Bitcoin continues to progress, its additional upside margin will a priori be limited by the major psychological threshold of $40,000, which could offer resistance at least for a moment.
Above $40,000, the sky would begin to brighten further for Bitcoin, which would begin to enter a bullish reversal pattern from the background trend. In the meantime, a relapse towards $30,000 remains possible.
Finally, with regard to the next events likely to impact the price of Bitcoin, it will be recalled that the weekend will be busy, with the ECB meeting on Thursday, and the NFP report on Friday. A hawkish ECB could weigh on Bitcoin, while the NFP report could influence market expectations for the next Fed meeting where a 0.25% rate hike is expected.
Finally, with regard to the other main cryptocurrencies, it should be noted that some have rebounded much more than BTC since yesterday. wins for example more than 9% over 24 hours, while flies more than 17%, and more than 19%.
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