Bitcoin Faces Short-term Volatility, Bull Market Momentum Still Holds: Expert Analysis
Summary:
Crypto traders expect short-term Bitcoin (BTC) price dips, according to the Bollinger Bands momentum indicator, yet this does not suggest a halt in the bull market. Despite impending Bitcoin halving, experts advise holding, highlighting the strong long-term upward momentum. Depending upon various market factors, estimations range from a drop to $53k to a rise to $65k. Nonetheless, all moves involve inherent risks, and individuals should research thoroughly before making investment decisions.
Based on the observations from traders utilizing a popular momentum calculation tool, Bitcoin (BTC) might experience additional short-term price dips, yet it doesn't imply a total halt of the bull market movement. Bollinger Bands, a tool used in technical analysis to identify possible trading entry and exit points by examining price fluctuation, suggest traders often buy near the lower band and sell near the upper one. The potential for further Bitcoin depreciation is pointed out by traders who take note of increased daily price volatility. As a pseudonymous crypto trader Aqua relayed to his 16,500 X followers in a post on April 17, "A gradual release of the Bollinger Band squeeze, followed by a drop below support could lead to an extension to the 50Ks."
Emphasizing the increase in Bitcoin's Bollinger band, Aqua used it as a predictor of short-term price variation. Transactions expert Stockmoney Lizards, in a series of posts on April 17, anticipated an ongoing "market adjustment" despite the impending Bitcoin halving scheduled for April 20. Yet, it was also mentioned that the market continues to uphold bullish momentum over the long term. "The bull market isn't at its end; it’s merely taking a pause, which is understandable considering the consistent upward trend over the past year," they explained.
Technical analysis expert Tony Severino suggests that if the market cycle mirrors the events of 2017, Bitcoin's value may show considerable fluctuation. "A possible worst-case scenario with semblance to 2017 could see Bitcoin priced at $53K, as per Bollinger Band basis", he specified on April 16.
Crypto trader Rekt Capital reiterated on the same day that, to steer clear from aligning with the lows of an 18% contraction in March 2023, Bitcoin must uphold its current support levels. Meanwhile, the trading knowledge source, Material Indicators, noted that buy-side support is gaining strength around 5% below Bitcoin’s present value of $64,242. “Fire Charts indicates that bid liquidity-based support is growing steadily between $59k-$61k, with tertiary support extending to $50k,” they reported. According to the data from CoinGlass, if Bitcoin's value drops to the range's lower limit at $59,000, roughly $2.2 billion worth of long positions would be wiped out.
Simultaneously, Bitcoin's price has minimal fluctuation space before numerous short positions risk obliteration. If Bitcoin’s price climbs by 1.15% from its current standing to reach $65,000, short positions amounting to $551 million will potentially be liquidated.
Should the Bitcoin halving event lead to a hike in games, Shrapnel's 'basic' secret will be uncovered: web3 Gamer. This piece does not include investment advice or recommendations. Investments and trading maneuvers carry inherent risks, and it is recommended for readers to undertake their individual research before making any decision.
Published At
4/17/2024 11:16:18 AM
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