During the last two weeks BTC is going through a reality check. The price which reached levels below the
49K
before the approval of the first BTC ETF was mainly supported by the speculative money, in a quest for a high profits during the short period of time. This was certainly not good for the BTC, as it triggered a significant volatility after the approval of the ETF, where this speculative money was moved away from the crypto market as it is searching for new short-term-profit opportunities. It might take some time until the price of BTC finds a new equilibrium level and starts its move back to the upside. On the other hand, as more and more funds find their way to the crypto market through several already operating ETF`s, the price of BTC will move to higher grounds. But first, the current cycle needs to reach its bottom, in order for BTC to start the new one. And we can see its exhaustion through the daily trading volumes which are currently dropping on a weekly basis.
The price of BTC was moving within a relatively short range during the previous week. The highest price reached was $43.4K, while the coin tested the lowest level at $40.4K in Friday`s trading session. Still, the coin is finishing the week above the $41K. The RSI is clearly heading toward the oversold side of the market, currently moving around the level of 43. Within the future period it could be expected that the clear oversold side is reached, which would be a point of reversal when the price should revert to the upside. Moving average of 50 days is quite modestly slowing down its divergence from its MA200 counterpart, but the potential for any sort of cross is still far away.
Current charts are showing that BTC started testing the $40K support line during the last two days of the week. At this moment, there are prevailing selling orders, but due to decreasing daily trading volumes, there is a lower probability for this support line to be breached in the coming days. Still, in case that this occurs, then there is a low probability for the next support line at $38K to be tested. The most probable scenario for the week ahead, would be another move toward the short-term stop at $43K, in order for the price to revert back to the $40K support.
49K
before the approval of the first BTC ETF was mainly supported by the speculative money, in a quest for a high profits during the short period of time. This was certainly not good for the BTC, as it triggered a significant volatility after the approval of the ETF, where this speculative money was moved away from the crypto market as it is searching for new short-term-profit opportunities. It might take some time until the price of BTC finds a new equilibrium level and starts its move back to the upside. On the other hand, as more and more funds find their way to the crypto market through several already operating ETF`s, the price of BTC will move to higher grounds. But first, the current cycle needs to reach its bottom, in order for BTC to start the new one. And we can see its exhaustion through the daily trading volumes which are currently dropping on a weekly basis. The price of BTC was moving within a relatively short range during the previous week. The highest price reached was $43.4K, while the coin tested the lowest level at $40.4K in Friday`s trading session. Still, the coin is finishing the week above the $41K. The RSI is clearly heading toward the oversold side of the market, currently moving around the level of 43. Within the future period it could be expected that the clear oversold side is reached, which would be a point of reversal when the price should revert to the upside. Moving average of 50 days is quite modestly slowing down its divergence from its MA200 counterpart, but the potential for any sort of cross is still far away.
Current charts are showing that BTC started testing the $40K support line during the last two days of the week. At this moment, there are prevailing selling orders, but due to decreasing daily trading volumes, there is a lower probability for this support line to be breached in the coming days. Still, in case that this occurs, then there is a low probability for the next support line at $38K to be tested. The most probable scenario for the week ahead, would be another move toward the short-term stop at $43K, in order for the price to revert back to the $40K support.
