4.25 Market Analysis | Bitcoin has a short-term correction, but a long-term bullish momentum has been formed
Coin Circle Bond
Coin Circle Bond
Blockchain
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Author: BitBond007
market factors
Since the second quarter, traders have paid close attention to cryptocurrency developments, with trading volumes continuing to increase and industry sentiment continuing to improve. Altcoins are listed on more exchanges, and many hard forks have been completed without any major issues.
However, the dollar was supported by improving data and rising U.S. Treasury yields. Risk aversion could resurface as Trump's comments on the Iran deal have reignited geopolitical risks.
Bitcoin price seems to be shrugging off the negative press. For example, the former CEO of PayPal just pointed out that Bitcoin is the biggest scam in history. He believes Bitcoin is a giant “pump and dump” scam on a scale never seen before. “The losers in this scam are ill-informed buyers, and a large amount of wealth is transferred from ordinary families to the hands of Internet promoters.” News like this has been unable to affect the price of Bitcoin, which reflects the market’s acceptance of Bitcoin. The degree is getting higher and higher.
Finally, Thomson Reuters conducted a survey of more than 400 companies. The survey results showed that most of the companies that are expected to start cryptocurrency trading this year hope to lay out cryptocurrency trading in the next 3 to 6 months. Meanwhile, 22% of companies expect to do this within the next six to 12 months. This may lead to a new round of explosion in the cryptocurrency market.
Main highlights
Bitcoin price is forming a double bottom pattern, signaling an impending climb.
The price is yet to test the $12,000 neckline to confirm a long-term rebound.
The chart pattern spans $6,000 to $12,000, so the eventual climb could be the same.
The last two attempts by Bitcoin price to fall below $6,000 have failed, forming the current double bottom reversal pattern.
Technical indicators
The 100 SMA is below the 200 SMA, indicating the path of least resistance is to the downside. This suggests that the downtrend could still resume from here, especially if the price tests the inflection point of the moving averages.
This also aligns with the $10,000 major psychological level interest area. If the sell-off resumes, Bitcoin price could fall back to lows around $6,500. On the other hand, if the neckline is broken, a sustained climb towards $18,000 is possible.
The stochastic indicator is already showing overbought conditions, indicating that buyers are exhausted and sellers are ready to take over the market.
"To sum up, as buyers have shown weakness, Bitcoin prices will see a short-term correction, but a long-term bullish momentum has been formed."
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