Bitcoin’s Price Surge Persists; Expert Cautions of Impending Bearish Trends
Recent days have seen a robust recovery in the cryptocurrency market, with major assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) experiencing substantial price hikes. Amidst this optimistic atmosphere, a post by Julio Moreno on X (previously known as Twitter) has sparked interest within the crypto community.
Julio, the head of research at CryptoQuant, raised a red flag in his post, pointing out that the bull-bear market cycle indicator for Bitcoin is currently signaling a bearish trend. He highlighted that similar bearish signals were evident during the COVID-19 market crash in March 2020 and after the Chinese cryptocurrency mining ban in May 2021.
Based on Julio’s assessment, the Bull-Bear Market Cycle Indicator has now shifted into the BEAR phase (marked by a high blue area) for the first time since January 2023. This development has prompted concerns among investors and traders regarding the future price direction of Bitcoin.
Despite the cautionary signals, Ki Young Ju, the founder and CEO of CryptoQuant, maintains that Bitcoin retains a bullish outlook as long as it remains above the $45,000 mark. He also expressed confidence in the potential for Bitcoin to surpass its previous all-time high later in the year.
Technical analysis indicates that Bitcoin is currently in a bullish phase, garnering support and breaking out of a descending channel pattern. With Bitcoin consistently rebounding from the support level in recent months, speculations arise about the likelihood of a surge towards $60,000 in the near term. Nevertheless, surpassing the $60,000 level might present a challenge due to the presence of the 200 Exponential Moving Average (EMA) on the daily chart.
Should Bitcoin successfully breach this resistance barrier, experts anticipate a potential rally towards $70,000. The Relative Strength Index (RSI) also suggests an overbought status, hinting at a probable price resurgence in the coming days.
In addition to price forecasts, recent on-chain data reveals active involvement by whales and institutions in the crypto market. The deposit of $95 million USDT by Cumberland into prominent exchanges like Coinbase, Kraken, and OKX, alongside reports of whales acquiring $340 million worth of ETH, further underscore the increasing interest in cryptocurrency investments.
Amidst the market’s volatility and expert warnings of potential downturns, investors are advised to vigilantly track Bitcoin’s price fluctuations and market indicators to make well-informed choices. While the recent price upswing offers hope, caution is encouraged to navigate the shifting dynamics of the cryptocurrency realm.
