Bitcoin Faces Selling Pressure and Potential for Bullish Recovery

One sentence summary – Bitcoin is currently facing selling pressure and has lost support at $26,000, with a potential bullish recovery requiring a rally of over 30% and surpassing the critical breakout level of $33,755, while Bloomberg’s senior commodity strategist draws parallels between Bitcoin’s price action and the Nikkei index, indicating the possibility of contagion or a recovery following a similar path, and maintaining a position above $31,000 would signal strength in Bitcoin’s recovery, although the downward trend may be influenced by tightening measures implemented by the Federal Reserve and other central banks, and technical analysis reveals similarities to the chart pattern observed before the 2021 price crash, suggesting the potential for a third peak at a lower high, and considering historical trends, September has historically been a month of major corrections for Bitcoin, indicating the possibility of a similar trend this time.

At a glance

  • Bitcoin is currently facing selling pressure and has lost support at $26,000.
  • Historical data analysis suggests that a bullish recovery would require surpassing the critical breakout level of $33,755, indicating a need for a rally of over 30%.
  • Bloomberg’s senior commodity strategist draws parallels between Bitcoin’s price action and the Nikkei index, suggesting the possibility of contagion or a recovery following a similar path.
  • Maintaining a position above $31,000 would signal strength in Bitcoin’s recovery.
  • The downward trend may be influenced by tightening measures implemented by the Federal Reserve and other central banks.

The details

Bitcoin, the world’s largest cryptocurrency, is currently facing selling pressure.

The digital currency has lost its support at the $26,000 mark.

Historical data analysis is being used to gauge the potential for recovery.

This analysis reveals that Bitcoin typically triggers a bullish run when its price surpasses the average cost basis of holders with a 6-month to 3-year track record.

For a bullish recovery to be confirmed, Bitcoin needs to surpass the critical breakout level of $33,755.

This would imply a rally of over 30%.

Bloomberg’s senior commodity strategist has drawn a parallel between Bitcoin’s price action and the Nikkei index.

This suggests that the recent weakness in the crypto market may indicate contagion or a potential recovery following the path of the Nikkei.

Bitcoin’s recovery strength will be signaled if it can maintain a position above $31,000.

However, the downward trend may be influenced by the Federal Reserve and other central banks implementing tightening measures.

These measures are contributing to the current market decline.

Technical analysis of Bitcoin’s chart pattern reveals similarities to the one observed before the price crash following the 2021 bull run.

This pattern suggests the possibility of a third peak forming at a lower high.

It is worth noting that September has historically been a month of major corrections for Bitcoin.

Considering this historical trend, it is plausible that the current market correction is following a similar path.

In summary, Bitcoin is currently facing selling pressure and has lost support at $26,000.

A potential bullish recovery would require surpassing the critical breakout level of $33,755.

This indicates a need for a rally of over 30%.

Bloomberg’s senior commodity strategist draws parallels between Bitcoin’s price action and the Nikkei index.

This suggests the possibility of contagion or a recovery following a similar path.

Maintaining a position above $31,000 would signal strength in Bitcoin’s recovery.

However, the downward trend may be influenced by tightening measures implemented by the Federal Reserve and other central banks.

Technical analysis reveals similarities to the chart pattern observed before the 2021 price crash.

This indicates the potential for a third peak at a lower high.

Considering historical trends, September has historically been a month of major corrections for Bitcoin.

This suggests the possibility of a similar trend this time.

Article X-ray

Here are all the sources used to create this article:

A graph showing a fluctuating Bitcoin price with an arrow pointing downwards and another arrow pointing upwards.

This section links each of the article’s facts back to its original source.

If you have any suspicions that false information is present in the article, you can use this section to investigate where it came from.

coingape.com
– Bitcoin has lost support at $26,000 and is under selling pressure.
– Historical data suggests that Bitcoin triggers a bull run when its price surpasses the average cost basis of holders with a 6-month to 3-year track record.
The critical breakout level for Bitcoin is identified at $33,755, indicating a need for a rally of over 30% to confirm a bullish recovery.
– Bloomberg’s senior commodity strategist compares Bitcoin’s price action to the Nikkei index and suggests that recent weakness in crypto may indicate contagion or a potential recovery following the path of the Nikkei.
– Maintaining a position above $31,000 would signal strength in Bitcoin’s recovery.
The Federal Reserve and most central banks implementing tightening measures may contribute to the downward trend.
– Bitcoin’s chart pattern resembles the one before the price crash after the 2021 bull run, with potential for a third peak at a lower high.
– September has historically been a month of major corrections for Bitcoin, suggesting a similar trend this time.

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