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Bitcoin Drops Below 4-Hour MA – Bearish Trend Ahead?

Following a pullback, the price of Bitcoin has continued on its downward movement. The coin, after failing to break above the 100-day Simple Moving Average (SMA) and the trend line has experienced a drop of over 6% from its previous high.

Will the price of BTC continue to move in a downward direction or will it reverse and start moving in an upward direction?

As of the time of writing, the price of BTC was trading around $62,972 which is about 28% down from its all-time high and was down by 1.27% in the last 24 hours. Although the price is trading below the 100 SMA on the 4-hour chart, on the daily chart it is still trading above the 100 SMA.

Current Condition Of Indicators And What They Suggest

Looking at the chart, technically a support level and a resistance level of $59,653 and  $67,255 were formed respectively. However, there could be more support and resistance levels created if the price continues to move downward.

Bitcoin

4-Hour Moving Average: A technical observation of the chart from the 4-hour timeframe as seen in the image below reveals that the price is trending below the 100-day moving average. This suggests that the price is on a downtrend and could potentially move further downward.

4-Hour RSI indicator: The Relative Strength Index (RSI) indicator here suggests a downward trend as the RSI signal has crossed and is trending below the 50% line as observed on the above chart.

Bitcoin

The MACD indicator from the 4-hour chart also suggests that the price might continue to move downward as the MACD histograms are trending below the zero line. Both the MACD line and the Signal line have crossed and are trending below the MACD zero line, indicating a bearish trend, as seen in the above image.

Possible Outcome

With the setup of the above indicators, it can be suggested that the price of Bitcoin is still bearish and that there are possibilities that it could still move further downward.

If Bitcoin continues downward and breaks below the support level of $59,653, it could witness a deep correction to create a new support level. However, if the price fails to break below this support level, it could start an upward correctional movement towards its previous level of $67,255 and if it manages to break above this level, the price will begin an uptrend.

Bitcoin

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Analysts Identify Key Scenario For Bitcoin Hitting $100,000

Prior to the Bitcoin Halving event, BTC’s price saw considerable instability, but it has since rebounded, reaching the $66,000 level, triggering bullish predictions from top crypto analysts regarding the coin’s future path.

Captain Faibik, a crytocurrency analyst and trader, has emerged with an intriguing prediction, underscoring a narrative that could potentially propel the price of Bitcoin to the coveted $100,000 mark in the upcoming months.

Bitcoin Poised For A Notable Rally To $100,000 

According to Captain Faibik, Bitcoin has managed to hold the $60,000 support level in the wake of bullish investors in the market. As a result, the largest crypto asset by market cap is currently making a strong comeback.

These bullish investors, according to Faibik must reclaim the crucial $72,000 resistance level in order to see a major rally to the $100,000 price level. This scenario acts as a ray of hope for the cryptocurrency community, igniting speculations and influencing projections about Bitcoin’s potential for future growth. Given the anticipated impact of the Bitcoin Halving and bulls, the $72,000 level could be realized in the short term.

Bitcoin

The expert previously highlighted that the Bitcoin weekly candle closed above the Exponential Moving Average (EMA) 10, demonstrating that the bulls are still very much in charge of the market. Following the Descending Channel break out in October last year, BTC Bulls has firmly secured the weekly EMA10, prompting the crypto analyst to put his next price target for the digital asset at $100,000.

Faibik also noted that the daily Relative Strength Index (RSI) for Bitcoin has emerged from a falling wedge pattern. This breakout suggests that a 15% to 20% bullish rally in Bitcoin’s value is on the horizon.

Meanwhile, in the daily timeframe, a bullish flag formation is underway, and in the event of an upward breakout from the bullish flag, Faibik anticipates a new all-time high for Bitcoin by May.

Is A $1.5 million Price Level Possible For BTC?

One of the most bullish predictions for Bitcoin this year came from Ark Invest Chief Executive Officer (CEO) Cathie Wood. The CEO foresees the digital asset to rise by over 2,000% reaching a whopping $1.5 million by 2030.

During an interview in Hong Kong, Wood reiterated her projections for BTC, which were supported by a thorough investigation that included institution surveys and evaluations of market volatility.

She stated:

I have been asked this question from different angles, and our analysis from multiple perspectives indicates that by 2030, Bitcoin could rise to $1.5 million. This price prediction is based on a survey of institutions, using a discount rate and volatility analysis.

Initially, Wood’s forecast for Bitcoin was estimated at $600,000 in the next six years. However, considering the effect of the Bitcoin Spot Exchange-Traded Funds (ETFs), she now believes the coin has the potential to hit $1.5 million.

Bitcoin

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BNB Resilience: Holding Firm At $560 – What’s Next?

The price of BNB hasn’t fallen below its previous low, and it’s showing some strong signs of heading up. After a spell of moving downward, the Binance Smart Chain’s native token is aiming for an upward bounce back towards its earlier high.

Technical Indicators Point Toward Sustained Uptrend For BNB

To figure out where the BNB price might be headed next, several indicators can be used to examine the chart:

BNB

4-Hour MACD: A technical look at the MACD indicator from the 4-hour timeframe, the MACD histograms are trending above the zero line, and both the MACD line and the Signal line have crossed and are heading towards the MACD zero line, indicating a bullish trend. This can be seen in the above image.

RSI 4-hour Timeframe: The formation of the Relative Strength Index (RSI) in the below image also suggests an upward movement as the RSI signal line is seen trending above the 50% level. This indicates that buyers are still very active in the market therefore overpowering the strength of sellers.

4-hour alligator: A look at the alligator indicator from the 4-hour time frame shows that BNB is trading above the alligator lines as the alligator lip and teeth have both successfully crossed above the alligator jaw, suggesting that the price might be starting a new rally.

BNB

At the time of writing, the price of BNB was up by 1.35% and was trading around $561 in the last 24 hours. BNB price is showing bullish signs and also forming a base above the $508.1 support level. Also, the price is trading above the bearish trend line and below the 100 Simple Moving Average (SMA) on the 4-hour chart.

Final Thoughts

From the previous downward movement, the price of BNB has managed to create one major resistance level of $635 and one major support level of $508. Currently, BNB is moving toward this resistance level and if it breaks above this level, the price might go even further to create a new high. 

On the other hand, if the price fails to break above this major resistance, it will reverse and start a downward movement toward its previous support and if it manages to break below this support level, the price might move further downward thereby starting a new downward trend.

BNB

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Bitcoin Halving Could Catalyzed $100,000 Price Surge: Bitwise CEO

As the cryptocurrency community excitedly awaits the impending Bitcoin halving, Bitwise Chief Executive Officer (CEO) Hunter Horsley has weighed in on its impact on BTC, predicting that the event could potentially propel prices to $100,000 or even higher.

Horsley expressed his optimistic outlook toward the upcoming Bitcoin Halving on the X (formerly Twitter) platform. Every four years, the Halving has historically been linked to greater price increases, and Horsley’s upbeat view indicates that this cycle might be no different from the others.

Upcoming Bitcoin Halving Is Being Underestimated

According to the CEO, the much-anticipated event is presently being significantly underestimated in the crypto space. He claims that the market has never priced in it in the past, and it will not be priced in this time either, expressing his confidence toward the occasion.

Horsley highlighted the historical relevance and transformative implications of these occurrences, drawing comparisons with past Halvings and citing the notable profits that investors achieved in 2020, 2016, and 2012. He stated that following months of debate by investors on whether the previous three halvings were priced in, Bitcoin grew by 5.4x, 2.8x, and 88x, respectively.

Given the past price developments, the Bitwise CEO anticipates this Halving to serve as a catalyst for the $100,000 target for BTC. Horsley’s prediction seems very reasonable since the figure is just about a 47% increase from the digital asset’s current price.

It is worth noting that the opinions of fully deployed current holders are not used to measure the impact of the Halving. Rather, it depends on whether there will be a significant and sustained increase in demand in addition to the daily decrease in the supply of natural sellers. 

In all, the Bitwise CEO foresees a steady growth in demand along with the conditions for a substantial Halving event this year. As investors prepare for the possible impact of this historic occasion on Bitcoin’s price trajectory, this audacious prognosis highlights the possibility of massive price increases not only in BTC but the entire cryptocurrency market.

BTC Move Into No Man’s Land

With the Halving less than 24 hours away, Cold Blooded Shiller, a cryptocurrency analyst, has reported that Bitcoin has entered No Man’s Land. “There are some interesting discussion points on BTC right now, but we have just entered No Man’s Land,” he stated.

According to Shiller, until one of the two green zones highlighted in his chart is contacted, he believes the price action is far more unpredictable. Nonetheless, there are some interesting links here for former price action and Relative Strength Index (RSI).

The analyst claimed the RSI is currently resetting on the Higher Time Frame (HTF), and the last time it occurred was back in January, following a similar breakdown from consolidation seen now.

While Shiller does not think the results will be the same this time, it’s quite reasonable if no recovery happens due to this degree of loss.

Bitcoin

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Avalanche (AVAX) Downtrend Persists Amid Market Uncertainty

Generally, the cryptocurrency market is bearish at the moment, with coins like Avalanche (AVAX), Ethereum, Litecoin, XRP, Solana, and others all caught in this trend. Currently, the price of AVAX is on a strong bearish move below the 100-day Moving Average (MA) and could continue in that direction for a while before retracing.

Technical Indicators Suggest A Bearish Trend For Avalanche

Observing the chart from the 4-hour timeframe, AVAX has crossed below both the 100-day moving average and the trend line. This could mean that the price is on a downward trend. The MACD indicator on the 4-hour timeframe suggests a very strong bearish movement as the MACD histograms are trending below the MACD zero line.

Avalanche

Also, both the MACD line and MACD signal line are trending below the zero line. Given the formation of the MACD indicator, it shows that there is a possibility that the price will still move further downward.

Furthermore, the Relative Strength Index (RSI) also on the 4-hour timeframe suggests a bearish trend as the RSI signal line is trending around the oversold zone. Despite the potential of a retracement at this point, the price will drop more following this.

Avalanche

The alligator indicator is another powerful tool used to determine the trend of an asset. A look at the above image shows that both the alligator’s lip and teeth have crossed over the alligator’s jaw facing the downward direction. This formation suggests that the trend is bearish and that the price could witness a deeper decline.

What Could Happen Next

Based on the price’s previous movement, there are two major resistance levels of $50 and $59.99 and a support level of $39.95. As Avalanche is on a negative trajectory, if prices manage to break below the support level of $39.95, it could trigger a move further toward the next low of $27.53.

On the other hand, if the price fails to break below its previous low, it might start an upward correction movement toward the resistance level of $50.80. However, if it manages to break past this level, AVAX might move even further toward the $59.99 resistance level.

As of the time of writing, the Avalanche was trading around $38, indicating a decline of 1.75% in the last 24 hours. Its market cap is down by over 16%, while its trading volume has increased significantly by nearly 250% in the past day.

Avalanche

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Dogecoin Rally Intensifies: Eyes Set On Historic New Highs

After a retracement from its current high of $0.22960, the price of Dogecoin (DOGE) looks like it is not yet done as the memecoin bounced back and moving toward its current high.

Dogecoin Price Technical Analysis

Dogecoin is one of the few memecoins that have captured the hearts of many crypto investors. Like Shiba Inu and Pepecoin (PEPE), Dogecoin is backed up by a strong and exciting community which has played a huge role in its success so far. 

At the time of writing, the price of DOGE was trading around $0.19713 and was up by over 5% in the last 24 hours. Also, the price is currently trading above the 100-day moving average with very strong bullish momentum in the 4-hour timeframe.

The MACD indicator in the 4-hour timeframe suggests an upward spike. This is so because the MACD line and the MACD signal that was trending below the zero line have both crossed, heading toward the MACD zero line. 

If the MACD line and the MACD signal line manage to cross above the MACD zero, Dogecoin might move higher to create a new high. Meanwhile, the MACD histogram is already trending above the zero line which suggests a bullish momentum.

Dogecoin

The Relative Strength Index (RSI) on the 4-hour timeframe also indicates a bullish momentum toward the upward direction as the RSI signal line has crossed above the 50% level and is heading towards the overbought zone. According to the RSI indicator, the strength of the upward movement is still very strong as buyers are still very active in the market.

Potential Retracement On The Downside

Given the price’s previous surge, two major resistance levels and one major support level were created around $0.22960, $0.2244, and $0.19622 respectively. If the price of DOGE manages to move above the resistance level of $0.22441 level, it might move even further upward toward the resistance level of $0.22960. 

At this point, if the price succeeds in breaking above this level, the price might surge higher to create a new high. On the other hand, if the price fails to break above this resistance level, the price might start a new downward movement toward its previous support level of $0.19622. However, a breakout below the $0.19622 level could trigger a new downward trend.

Dogecoin

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Arbitrum (ARB) Poised For Resurgence: Downtrend Reaching Climax?

Generally, the crypto market has been experiencing a pullback after Bitcoin and many other coins like Ethereum have recorded a new all-time high of which Arbitrum (ARB) was not left behind.

Arbitrum, which has a lot of potential with a market cap of over $3.8 billion and a circulating supply of 2,653,939,384 ARB has been trading below the 100-day Moving Average (MA) for some time now. However, recently the price of ARB has been showing some signs of reversing.

As of the time of writing, Arbitrum was trading around $1.45, indicating an increase of 1% in the last 24 hours. There are currently two major resistance levels of $1.799 and $2.278 ahead of the price.

Technical Indicators Show Signs Of Upward Movement In Arbitrum Price

4-hour RSI Indicator: Looking at the Relative Strength Index (RSI) indicator from the 4-hour timeframe, we can see that the RSI line is rising above the oversold zone and is heading toward the 50 level. This indicates a rise in the price, and if the RSI line rises above the 50 level, it might trigger the start of a new trend. 

The image below reveals more:

Arbitrum

4-hour MACD: looking at the formation of the MACD indicator from the 4-hour timeframe in the above image, we can also see that both the MACD line and the signal line having trended for a while below the MACD zero line have both crossed and are heading towards the MACD zero line. 

On the other hand, the MACD histogram is already trending above the MACD zero line. This suggests that a change in direction might soon happen from its downward movement to an upward movement.

1-hour bull power vs bear power histogram indicator: lastly, taking a good look at the chart from the 1-hour time frame with the help of the bull power vs bear power indicator, it shows that the histograms are already trending above the zero level. This suggests that buyers are gradually taking over the market from sellers as seen in the image below.

Arbitrum

In conclusion, if the price of Arbitrum manages to change its direction from downward to upward direction, it is possible that ARB could retest its previous major resistance levels of  $1.799 and $2.278 and even move further to create a new peak. Nonetheless, if Arbitrum fails to move upward, the crypto asset’s price might move further downward to create a new low.

Arbitrum

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Solana (SOL) Continues To Soar – How High Can It Go?

The Solana network’s native cryptocurrency, SOL, has been on an upward surge in the past three days, climbing from around $180 to over $210.

Having failed to break its previous low of $162.74, the coin, which is currently ranked 5th in the crypto market with a total supply of 441 million and a market capitalization of over $88 billion, SOL is showing no signs of stopping.

Will Solana Continue To Surge Upward?

At the time of writing, Solana has been up by 6.25% trading around $198 in the past 24 hours, and has broken above the previous resistance level of $195. The price is also trading above the 100-day moving average on the 4-hour chart of the SOL/USD pair. If the price continues to move upward, it might break above its major resistance level of $210 and move even higher to create a new high for the year. 

All these can be seen in the image below:

Solana

Looking at the chart with the help of the RSI (Relative Strength Index) indicator in the image above, we can see that the RSI line is trending above the 50 level. This is an indication that the price of SOL is still in a bullish zone and could even surge further upward. 

A further look at the 4-hour timeframe chart with the help of the MACD indicator, we can see that the MACD is on the bullish side as the MACD line, the signal line, and the MACD histogram are all trending above the zero line.

Finally, using the bull vs bear power histogram indicator, it appears buyers have taken over the market with powerful momentum and are ready to push the price even higher. 

We can confirm this in the image below:

Solana
With the momentum that Solana is moving with, there is a possibility that it could break above its previous resistance level of $210.27. If this manages to happen we could see prices soaring higher especially with the level of demand momentum in the market

Could SOL Dip?

If the price of Solana fails to break above the resistance level of $210, it could start a downside correction to its initial support level of 162. If the price closes below this support level, it could decline even further and probably start a downward trend.

Solana

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Ethereum Drops Below The 100-Day Moving Average – What’s Next?

The crypto market is experiencing a pullback after Bitcoin, the leading cryptocurrency, reached a new all-time high. However, Ethereum (ETH) is not left out in this downward move.

After setting a new yearly high of $4,094, the price of Ethereum has been moving downward and this has led to the price trading below the 100-day Moving Average (MA) both in the 1-hour and 4-hour timeframes, but this is not so in the daily timeframe. 

Will the price continue downward or will it change direction and start moving upward? At the time of writing, Ethereum’s price was trading around $3,360 and was up by 0.64% in the last 24 hours.

Ethereum Indicators And What They Suggest

Looking at the chart, technically we can see that a support level of $3,067 and a resistance level of $3,681 and $3,591 have been formed respectively. Nonetheless, there could be more support and resistance created if the price continues to move downward.

4-Hour Moving Average: A technical observation of the chart from the 4-hour timeframe as seen in the image below reveals that the price is trending below the 100-day moving average. This suggests that the price is on a downtrend and could potentially move further downward.

Ethereum

 4-Hour RSI indicator: With the help of the Relative Strength Index indicator (RSI) we can see the RSI signal line is trending below the 50 line. This is a strong indication that the price of Ethereum is in a downward trend as observed in the image above.

MACD Indicator: Taking a close look at the MACD indicator in the 4-hour timeframe, it appears that the MACD histogram has dropped below the zero line. In addition, both the MACD line and the signal line have crossed below the zero line. 

This setup indicates that the price is still bearish and there are possibilities that it could still move downward. The image below provides more details:

Ethereum

Possible Outcome

If the price of Ethereum continues downward and breaks below the support level of $3,067, it could move further downward to create a new support level. However, if the price fails to break below this support level, we could see a price reversal and may start a fresh trend upward. Thus there could be a possibility that the price could break above the resistance levels of $3,681 and $3,591 respectively, and continue its bullish run.

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Bitcoin Rally Continues: Analyst Predicts $70,000 Target Soon

Bitcoin continues to maintain its momentum toward the upward trajectory, touching the $68,000 price mark earlier today, leading to speculations about how long it will take to hit a new peak.

Bitcoin To Reach $70,000 In A Matter Of Time

With the price action of Bitcoin today, several crypto analysts are bullish about BTC as they believe that the crypto asset could reach a new peak very soon. The digital asset recently touched the $68,000 threshold for the first time in nearly 3 years, placing it just short of capping off a notable recovery.

In a post on the social media platform X (formerly Twitter), Cryptocurrency analyst and enthusiast Crypto Jelle has expressed his bullish optimism toward BTC with the community. His predictions examine Bitcoin’s current price position and its potential to surpass its all-time high.

According to the crypto expert, the price of BTC is just “inches away” from reaching unprecedented heights. He pointed out that the coin tried to break through its current peak but was unsuccessful.

Additionally, he noted that the crypto asset is presently “retesting the 4-Hour 25 Exponential Moving Average (EMA) and the 50 Relative Strength Index (RSI).” Nonetheless, crypto Jelle believes that “both trends are good entries that could trigger a bounce” to a new level.

Bitcoin

As a result, the analyst has predicted the asset to reach “$70,000 in only a matter of time.” Furthermore, he has urged the community to be patient as this is the “name of the game.”

The post read:

Bitcoin is within inches of a new all-time high. Rejected on its first attempt, but now retesting the 4-Hour 25E MA and the RSI 50 level. Both tend to be good entries for a bounce. $70,000 is a matter of time, and patience remains the name of the game.

As Bitcoin continues to rally, the token’s fear and greed index seems to have also skyrocketed. Jelle has also highlighted in another post that BTC’s “fear and greed index are presently reaching extreme levels.”

However, this does not imply that we will be seeing a pullback, according to the expert. He then clarified that as of the time Bitcoin surpassed $20,000, the fear and greed index was higher than it is now while urging investors not to be “shaken out” of the market.

BTC Could Hit $150,000 Before 2024 Closes

The head of research at Fundstrat, Tom Lee, has also shared his optimism toward BTC in an interview with CBNC. Tom Lee’s optimistic overview came in light of the asset drawing close to its peak.

According to Lee, he believes that Bitcoin is heading straight back towards its “long-term trendline.” Due to this, he has placed his price target at “$82,000 in the short term.” Lee also predicted a long-term price for BTC, putting his target at “$150,000 before the year closes.”

Presently, Bitcoin is situated at $66,710, up by over 2% in the past day, and above 18% in the past week. CoinMarketCap shows that its market cap and trading volume are up by 2.70% and 70.61% in the past day, respectively.

Bitcoin

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Bitcoin Bulls Persists: Analyst Identifies Trend As Catalyst To $60,000

As the entire cryptocurrency market is currently experiencing a notable upward trajectory, several market analysts are anticipating more gains for Bitcoin, the leading cryptocurrency asset, as they predict the token’s price to go even higher.

Historical Trend That Will Send Bitcoin To $60,000 

Crypto Jelle, a cryptocurrency analyst and investor, has expressed his optimism toward Bitcoin’s price action. Jelle recently shared a positive prediction for BTC in the near future on the social media platform X (formerly Twitter).

The expert’s projections delve into the present price movement of Bitcoin and its potential to increase even further. He highlighted a trend which serves as a catalyst for a price increase.

Jelle’s X post was accompanied by a chart that shows that the crypto asset has formed a “Bullish Megaphone” pattern. According to him, this is “yet another bullish megaphone pattern,” suggesting the price will go higher, putting his price target at $60,000. If Bitcoin manages to maintain its current momentum amid the crypto market’s rally, it is possible that BTC’s price might reach $60,000.

Bitcoin

In another X post, Jelle also pointed out that the token is presently in an area in which it normally sees the best gains. Jelle revealed that the BTC always experiences the best return when its “weekly Relative Strength Index (RSI) is above 70.” Due to this, he has urged his thousands of followers to invest significantly in the token to position themselves for more gains.

BTC finished the previous week on a bullish note, staying put above the $52,000 threshold in the face of strong opposition. This simply suggests a strong faith and dependency on the digital asset from investors.

After going past the $52,000 level, it set a new weekly culmination record spanning two years. Because of Bitcoin’s tenacity and upward movement, investors and market watchers are anticipating what lies ahead.

Massive Whale Moves Amid Price Rally

In light of BTC’s rally, Whale Alert has reported massive whale transactions carried out hours ago. Whale Alert revealed that around 18,484 BTC valued at about $962 million were taken out of the decentralized exchange Coinbase.

The on-chain tracker reported that the aforementioned withdrawals were carried out in two distinct transactions. Whale Alert noted that the first transaction saw 9,322 BTC worth approximately $485 million being withdrawn from Coinbase.

Meanwhile, the second transaction witnessed 9,162 BTC valued at about $476 million being extracted from the same exchange. Both wallet addresses involved in the withdrawal appear to be new ones, as they had no previous transaction history.

As of the time of writing, Bitcoin was trading at $52,336, indicating an increase of over 9% in the past 7 days. Despite the price rise, its trading volume appears to be down by over 10% in the past 24 hours.

Bitcoin

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Why “Overbought” Bitcoin Could Trigger A 107% Rally

Bitcoin price had previously been showing extreme strength leading up until the debut of the first spot ETFs. That strength has since subsided, leading to a 20% correction in BTCUSD.

A popular technical indicator that measures momentum, however, could point to powerful continuation to the upside, but only if a certain level is breached. Keep reading to learn more about the Relative Strength Index and how the top cryptocurrency behaves once the market reaches an “overbought” level.

Bitcoin Approaches “Overbought” And Why This Isn’t A Bad Thing

The Relative Strength Index is a momentum-measuring tool that signals when a market is “overbought” or “oversold”. When a financial asset reaches such conditions, it often means the trend is about to change.

In Bitcoin and other cryptocurrencies, the weekly RSI is often a signal that the asset is moving into its most powerful phase. For example, Bitcoin made it above a reading of 70 in October 2023, and only weeks later saw an over 60% rally to local 2024 highs.

Now 1W BTCUSD charts are showing an RSI reading of just below 70, pointing to a possible close back above the overbought level. If bulls can keep the top cryptocurrency by market cap above $43,650, the weekly RSI should close above the threshold.

bitcoin rsi

BTCUSD Historical 1W Relative Strength Data

Historical data could possibly shed some light on what might happen if the weekly Relative Strength Index gets the close above 70 as anticipated.

Over the last ten years, Bitcoin saw a 1W RSI close above 70 a total of 13 times. This happened 8 times in 2016 and 2017, twice in 2019, and once each in 2020 and 2021. One additional instance occurred in 2023.

Of the 13 times, the average gain after the RSI closed above 70 to the peak of the movement was 107%. The largest rally was in 2020, bringing over 400% returns. The smallest rally was in 2016 and saw only a 20% gain.

After removing the largest and smallest outliers, the average drops down to around 61%. This could mean that Bitcoin could produce on average a move between 61 and 107%.

A 61% gain takes BTCUSD back to just under $68,000 and shy of a new all-time high, while a 107% move sets a new record closer to $90,000 per coin. The cryptocurrency is also potentially working on a bull flag pattern, with a target of around $77,000.

Bitcoin bull flag rsi

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Ethereum Whales Scoop Up $230 Million In ETH In One Week – Price Hike Next?

In the past week, some of the biggest Ethereum whales, those with holdings ranging from 1 million to 10 million ETH, have accumulated an impressive 100,000 ETH, valued at a staggering $230 million.

This active buying stance by influential investors highlights their unwavering belief in the long-term potential of Ethereum, even in the face of recent price corrections.

Despite the recent downtrend in prices, indications from recent Ethereum whale activities suggest a persistent confidence in a bullish market continuation.

Wealthy Traders Accumulate Millions In Ethereum

Subsequent to the promising start in the initial days of December 2023, various cryptocurrency assets, notably Ethereum, displayed robust performance.

Crypto whales have reportedly devoured hundreds of millions of dollars’ worth of Ether, the leading altcoin, during the past seven days, according to a well respected expert.

On the social networking site X, cryptocurrency strategist Ali Martinez informs his 36,100 followers in a new thread that wealthy traders have amassed tens of thousands of Ethereum during the previous seven days.

Price rallies are usually the result of heavy purchasing demand from wealthy investors, and the recent whale accumulation indicates that this is the case.

On December 7, Santiment Feed connected a whale accumulation pattern to ETH’s surge, which culminated in a 19-month high over the $2,350 price point.

As a rule, whale activity affects cryptocurrency asset prices. Recent activity among ETH whales indicates that a price rally may be approaching.

Although there is a lot of buying pressure in the market right now, caution is advised because the bottom could not have yet been achieved.

RSI And Stochastic Neutral, Ethereum Uncertainty

Relative Strength Index (RSI) and stochastic are both currently in neutral territory, according to data from CryptoQyant. There is still uncertainty regarding the market’s genuine bottom notwithstanding the buying activity.

We looked at the liquidation heatmap to try and estimate Ethereum’s possible support levels. Based on the analysis, there was a rise in liquidations in the $2,140–$2,170 range.

This implies that before Ethereum’s price initiates its next bullish rebound, it is likely to drop below these levels. But in the event of a rally, Ethereum would have to overcome a significant resistance level close to $2,380.

Ethereum’s near-term price changes are difficult to forecast because to the complex interaction of market indicators and liquidation data.

Meanwhile, the $2,148 price mark appears to be the asset’s short-term support, according to an analysis of the ETH daily price chart. In order to increase the likelihood of one more rise before the end of 2023, bulls will hope that this level holds.

If there is a break below, it may indicate the construction of a more intricate bullish continuation chart pattern, similar to a bull flag. On smaller time frames, this pattern may resemble a descending channel and undermine expectations for another significant rise in 2023.

Ether and other cryptocurrency values are sensitive to a number of external variables, including generalized macroeconomic sentiment. Ethereum has already risen 81% year-to-date at its current price.

Featured image from Shutterstock

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Down But Not Out: The One Line Bitcoin Must Hold To Be Bullish

Bitcoin price is falling, testing the low $26,000 area of support after weeks of painful, sideways consolidation.

While the horizontal support line is clearly important, it’s nowhere near as critical as another line that BTCUSD absolutely must hold to remain bullish.

Drawing Trend Lines In Bitcoin Technical Analysis

In the practice of technical analysis, drawing trend lines is among the first basic steps anyone will take. Simply connect the line across various points on the chart to highlight support and resistancesupport and resistance.

Another basic step involves turning on technical indicators to look for potential buy and sell signals. Some of these tools call out when an asset is overbought or oversold, such as the Relative Strength Index.

More advanced techniques include drawing trend lines on indicators like the RSI instead of price. Much like drawing these lines from point to point diagonally can plot uptrends or downtrends, horizontal lines can also act as support or resistance on the RSI.

On the weekly timeframe Bitcoin price has pulled back to a reading of 53 on the RSI. This level must hold, according to past price history. Each time it has, the crypto market has erupted higher.

Bitcoin rsi

Bulls Must Show “Strength” At Current Levels

The above BTCUSD weekly chart shows the RSI pulling back to a reading of 53. The last time this happened, was in Q3 2020 right before an epic bull run. The short bullish rally in 2019 blasted right through it without a retest of the level.

Prior to these instances, all other outcomes were shockingly bullish when Bitcoin held above the line. Rather than falling into a bearish phase, each time BTCUSD weekly RSI held at the line in 2016 and 2017, the crypto market simply marched higher.

Other times, when BTCUSD failed to hold this line, a bear market ensued. A failed attempt to get back above the level typically led to the last leg of the bear market. However, getting back above it and then failing to hold could provide the crypto market with something more reminiscent of the COVID collapse and is something to watch closely for. Hold the line, and bulls will run again, possibly to new all-time highs.

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Bitcoin Weekly RSI Reaches Line Between Bear & Bull Market

Bitcoin price continues to push higher, leaving very few pullback opportunities thus far for those that failed to buy below $20,000.

Price action on BTCUSD the weekly timeframe, according to the Relative Strength Index, has reached a critical line that separates bear market from bull market. Any higher, and crypto could experience a full blown breakout. Let’s take a look.

What The Relative Strength Tells Us About Cryptocurrencies

The Relative Strength Index is a popular technical indicator used in cryptocurrencies, originally created by J. Welles Wilder in the 1970s.

The tool measures momentum through the “velocity and magnitude of price movements,” according to Wikipedia. Readings above 70 can indicate overbought conditions, and falling below 30 suggests an oversold market.

In rare instances, the RSI will remain overheated depicting an especially powerful trend. Most of the time it remains somewhere between 30 and 70 while prices consolidate or move sideways.

On higher timeframes, moving past the middle-zone on the RSI can send lower timeframes through the roof — or through the floor.

In the case of BTCUSD weekly charts, the RSI suggests this exact line in the sand is currently separating what could be a full breakout into a bull market – or a harsh rejection.

Bitcoin BTC RSI

Breaching this level on the RSI led to bullish rallies | BTCUSD on TradingView.com

Bitcoin Reaches Critical Line In The Sand Between Bear & Bull Market

Looking back throughout the history of Bitcoin, pushing above roughly 55-56 on the RSI has in the past led to extraordinarily bullish moves. Falling below it lead to the the deadliest declines and bear markets.

Even worse, as BTCUSD weekly finds itself at the key trigger level, rejection has resulted in some brutal moves. In 2014 a rejection from there kicked off the second phase of the bear market. In 2015, a bull market attempt was harshly rejected back to bear market lows.

The latest instance in 2020 a bull market was rejected and combined with the onset of COVID, resulted in the Black Thursday collapse. Considering the importance of the level and the fact some of the worst rejections ever have taken place when the RSI reached such a reading, it is no surprise investors remain skeptical and cautious.

If Bitcoin can make it above the current zone on the Relative Strength Index, the bull market could be back on in a flash. Currently, BTCUSD daily charts show a wildly elevated RSI, well into overbought conditions. However, extended phases of daily RSI levels support bull market behavior, and could indicate that the weekly RSI and further higher timeframes might also approach overbought levels at some point in the future.

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Overbought Or Ready To Rip? Bitcoin Daily RSI Reaches Explosive Levels

Bitcoin price is showing signs of getting overheated on daily timeframes using the Relative Strength Index (RSI). The tool, typically used to spot overbought conditions, is at one of its highest levels ever historically.

However, an elevated RSI reading in BTCUSD is deceiving, leading to some of the most dramatic moves ever on the cryptocurrency’s price chart. Here is a closer look at what happens when Bitcoin price action gets this hot.

Bitcoin RSI Reaches Highest Level Since Early 2021

After breaching above $20,000, onlookers are wondering if a possible bottom is in for Bitcoin, but remain skeptical after such a long, arduous downtrend.

Bears have good reason to expect a pullback: Bitcoin has become extremely overbought according to the Relative Strength Index. In fact, the top cryptocurrency is more overbought than at any other point during the entire bear trend.

Bulls, on the other hand, could be ready to push prices higher. In the past, the RSI has only reached such an elevated level – a reading of 90 or above – during the most intense bullish movements of recent years.

BTCUSD_2023-01-18_14-13-23

Why Crypto Could Be Ready To Rip Higher Once Again

Bearish investors and traders might be quick to claim that this time is different, considering the Fed raising interest rates, the backdrop of war and recession, and more. But bulls have much more data on their side, and momentum at their backs.

In fact, bulls have the entire history of BTCUSD price action to prove that the Relative Strength Index reaching such highs have led to the greatest sustained gains in crypto.

BTCUSD_2023-01-18_14-22-35

Bull markets are characterized by recurring phases of extreme RSI readings. Bull markets also end at such extremes, but typically only after at least a series of three waves. Bear market peaks, throughout the entire lifetime of BTCUSD price action, always fail to reach such highly elevated RSI.

The Relative Strength Index was created by developed by J. Welles Wilder – who also developed the Parabolic SAR, Average Directional Index, and Average True. The technical tool measures the speed of the change of price movements.

Although readings above 70 and below 30 typically represent overbought or oversold conditions, a reading of 90 only occurs with an extremely fast and strong move. Such fast and strong moves tend to appear more often in a bull market than a bear market.

Cryptocurrencies can remain notoriously overbought during periods of FOMO. Is that exactly what we’ve seen in Bitcoin recently? And will the number one cryptocurrency by market cap rip higher, or ultimately see a rejection here due to such overbought conditions?

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Uniswap Sellers Stop But RSI Develops Bearish UNI Price Divergence

Cryptocurrencies have been suffering higher volatility since the bear took control. For example, the fledgling crypto coin Bitcoin price plummeted to a low of $18,363 on Oct 13 and then reversed to $19,354 today. Unlike the other top coins creeping, Uniswap’s native token, UNI, marks higher gains. Although its price touched $5.50 when BTC plummeted on Thursday, UNI added over 14% following the day and claimed a $6.49 high.

At the time of writing, the token’s value hovers around $6.20, up by 0.96% in the last 24 hours. The Uniswap market cap also indicates a bullish trend, signifying the crypto winter started to ignore the project. Its capitalization has increased to $4.70 billion, representing a 0.24% gain.

Financial Indicators MACD Line And RSI Suggest Bearish Divergence

In line with the daily price analysis, UNI against USD presents a bullish trend ahead. The price actions form a high-low pattern which signs an uptrend for the token. As recent price moves show, investors did not miss any opportunity and connected with all swing lows. Likewise, Uniswap ended its retracement phase below $5 in the last week and now seems to find resistance above this. The expected price range for the token in October remains between $5.3 to $7.

Opposite to the positive happenings within the UNI network, the Moving Average Convergence/Divergence (MACD) line, an oscillator used to indicate market trends, currently points toward the bearish signal for the token and crosses the line. Likewise, the Relative Strength Index (RSI) shows a bearish divergence as its peak continues falling toward the 50 zone.

UNI’s price is currently trading at $6.15. | Source: UNIUSD price chart from TradingView.com
Uniswap To Deploy On zkSync For Cheaper Fee And Enhanced Security

UNI is the governance token of the decentralized exchange Uniswap, which allows users to trade and sell cryptos using smart contracts. It seems users and organizations are pushing for privacy in the sector, driving adoption and positively affecting prices. For example, on Wed, 12 October 2022, Coin Center, a think tank on cryptocurrencies, filed a suit against OFAC over restrictions against Tornado Cash, a privacy mixer (decentralized cryptocurrency tumbler). In return, almost the whole market reacted by going green as the news spread.

Notably, today’s announcement by the Uniswap platform might become a catalyst to pump the token’s price further. The Uniswap exchange has declared to build on the zkSync for enhanced privacy and security.

zkSync uses novel technology, also known as ZK Rollups, to enable faster transactions with minimum gas cost. The company decided to deploy privacy-focused layer two after completing a governance vote. Offering a minimum fee without compromising on security will attract more users and accelerate the network’s activity.

The parent company of zkSync, Matter Labs, commented that this move would onboard new users. Furthermore, the low network fee than Ethereum will make the platform more attractive. The company noted in a statement;

There’s significant value in Uniswap being available on an EVM-compatible ZK Rollup. Deploying early on zkSync helps solidify Uniswap’s place as the number one DEX and a thought leader.

Therefore, with zkSynce launch on mainnet within the next six weeks, investors’ wallets may profit from the project’s growth.  In addition, the token might enjoy resistance above $7 in the coming days, which the investors are hard to manage.

Featured image from Pixabay and chart from TradingView.com

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Bitcoin Weekly RSI Sets Record For Most Oversold In History, What Comes Next?

Bitcoin price is in free fall and the cryptocurrency community is in panic. The high-risk, speculative asset class is living up to its notorious volatility and the selling appears unstoppable.

At some point, all assets become oversold and recovery begins. After the most recent selloff, BTCUSD weekly RSI has reached the most oversold level in the entire history of price action, including two bear market bottoms.

Bitcoin Selloff Sets Record For Most Oversold Weekly RSI Ever

Bitcoin price today tapped below $22,000 per coin and is rapidly approaching prices closer to the 2017 peak. Many altcoins, including Ethereum, have already pushed below the past bull market peak in an unprecedented move for the crypto market.

Panic is properly ensuing. The frantic attempt to cash out coins as fast as possible while there is still value left has prompted many top exchanges to halt withdrawals and better assess the situation. The selling pressure has also pushed the weekly Relative Strength Index to the most historically oversold level since Bitcoin started trading.

Related Reading | Bitcoin Drops To 18-Months Lows, Has The Market Seen The Worst Of It?

The Relative Strength Index is a commonly used momentum oscillator first developed by J. Welles Wilder Jr. in the 1970s. Wilder is also the creator of the Average True Range, Average Directional Index, and the Parabolic SAR. It is used to gauge when assets become overbought or oversold.

With BTCUSD historically oversold on weekly timeframes using the RSI, what exactly could this mean, and what might happen next?

 

BTCUSD weekly RSI is the most oversold ever | Source: BTCUSD on TradingView.com
Comparing The Current Crypto Collapse With Past Bear Market Bottoms

A visual inspection of the BTCUSD weekly chart instantly puts the RSI below the lower threshold of 30 at around the same level as two past bear market bottoms. Readings below the lower threshold of 30 are considered oversold. In contrast, readings over 70 are considered overbought.

More precise readings of the 2015 and 2018 bear market bottoms are 28.41 and 28.72, respectively. The current reading on BTCUSD is under 28, marking the lowest point ever on weekly timeframes.

Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season

Although this is a sign that in hindsight could pinpoint a significant bottom in crypto, because the RSI is momentum-based, downside could continue until the momentum has run its course. Price can also repeatedly test the area similar to how Bitcoin regularly displays readings of overbought price action throughout its history.

Buyers at these prices would want to look for an RSI swing rejection setup according Wilder’s methodology. Much like during past bear markets, the setup involves waiting for the RSI to reach oversold levels. The rest of the strategy involves watching for the RSI to return back above the threshold, and hold above the threshold during the next correction. After the RSI makes a higher high, a buy signal is generated.

Taking a position now does not mean it is safe  | Source: BTCUSD on TradingView.com

Even then, bulls aren’t completely safe in their positions. If past bear markets are any indication of what to expect, there is a 50/50 chance of a double-bottom formation with a bullish RSI divergence.

In 2015, a second bear market bottom took place setting a slightly lower low after a full 200 days. The RSI made a higher low, signaling that the selling momentum was extremely weak relative to the movement of the price, and the most explosive bull run in history followed.

Was this the bottom sign that bulls were waiting for?

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com