Bitcoin recently faced a downturn after reaching $97,000, with analysts like Tony Severino and Ali Martinez suggesting potential for further declines, influenced by indicators such as LMACD and TD Sequential. There’s also historical data hinting at possible price patterns, while current trading sits at about $94,700.
Bitcoin’s recent surge to $97,000 was met with a significant price rejection last week, leading to discussions about its immediate future. Technical analyst Tony Severino shared insights regarding the LMACD indicator, highlighting that the price is now in a precarious situation. He noted that if daily momentum were to turn bearish, it would likely derail any potential for a weekly bullish crossover and could drag the monthly LMACD below zero, which is not a good sign for the flagship cryptocurrency.
Severino believes that multiple timeline analyses suggest a more aggressive downward movement could be on the horizon for Bitcoin. So, there’s that. However, he also mentioned the possibility of a bullish scenario if the daily LMACD shows an upward divergence, which could save a weekly bullish crossover and keep the monthly outlook from worsening. That said, his overall sentiment feels more tilted towards a price drop.
Supporting this bearish notion, analyst Ali Martinez indicated that the TD Sequential indicator is currently signalling a sell. He warned that if Bitcoin breaks below the crucial support level of $94,765, it could plunge down to the $90,000 or $86,000 mark, which, let’s face it, wouldn’t be great news for investors.
Looking back at historical trends, crypto analyst Rekt Capital suggested that Bitcoin might just be stuck in a repeating cycle. For this to happen, Bitcoin would need to not only reject levels around $99,000 but also maintain support above $93,500. A breakout after these fluctuations might see it reach new all-time highs, but it’s a tricky business.
Another analyst, Titan of Crypto, highlighted that Bitcoin is nearing a critical support area. According to his analysis, a strong reaction from this zone could suggest the upward trend is still safe; however, if Bitcoin fails to regain the $95,423 level soon, that could usher in a downtrend.
Bitcoin’s current trading level hovers around $94,700, reflecting a slight downtrend over the past 24 hours, based on data from CoinMarketCap. Investors and traders alike are holding their breath to see where things go from here before making decisions about their investments.
