From the $8,800 lows seen on Thursday, Bitcoin has registered a healthy rebound, recently retaking $9,200.
While this bounce off the lows has made many traders optimistic, the cryptocurrency remains on the edge of a cliff, a new analysis suggests. Thatâs to say, should prices fall or stagnate from here, BTC may find itself in a serious downtrend.
Bitcoin Must Hold Low-$9,000s
For the past eight weeks, Bitcoin has been in an uptrend from the $3,700 capitulation lows experienced in March. But with the ongoing stagnation in the low-$9,000s, a top analyst has begun to question the efficacy of the bull trend.
âSteady, reliable trend⦠they all break down sooner or later. This oneâs showing subtle signs of weakness creeping into the HTFâs,â he wrote in reference to the chart below, which shows that Bitcoin is about to break below a key trend indicator, which supported the uptrend over the past two months.
Bitcoin price chart from crypto trader Stackinâ Bits (@Stackinbits on Twitter). The chart shows that the cryptocurrency is on the verge of losing a key support level.
The level that Bitcoin must hold, according to the indicator is ~$9,100, as it would confirm that the medium-term market structure remains bullish.
Bullish Factors Remain
Fortunately for bulls, there is a confluence of fundamental and on-chain factors suggesting that Bitcoin will rally out of its stagnation over the coming days, thereby maintaining the bull trend.14 BTC & 30,000 Free Spins for every player, only in mBitcasinoâs Crypto Spring Journey! Play Now!
Just this week, Bitcoin registered a textbook bullish signal: a golden cross.
As Investopedia describes, a golden cross is a âcandlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average.â In this case, BTCâs 50-day simple moving
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