- Bitcoin’s recent rally reaches $64,000, sparking market optimism.
- Technical indicators like the Ichimoku Cloud suggest a bear market
Despite a recent rise in the market value of Bitcoin (BTC), the royal coin’s return to the $64,000 mark is clouded by lingering concerns that could potentially dampen optimism surrounding its recovery.
Although this recent rise to the $64,000 mark indicates further upward movement in its price, one analyst has however given reasons why traders should remain cautious despite the apparent bullish signs.
A fragile recovery in a context of optimism
Bitcoin’s resilience is often a barometer of market health. Recently, Bitcoin has demonstrated some semblance of recovery, gaining 2.4% over the past week and marking a modest 0.6% increase over the past 24 hours.
These gains pushed Bitcoin to touch the $64,000 threshold again, a level considered a critical indicator of potential upward trajectories.
However, celebrating this milestone may be premature as underlying issues loom.
The rally comes as BTC is down 13% from its March high, suggesting the road to recovery could be rocky.
The recent gains, while encouraging, represent a delicate balance in a market still recovering from previous setbacks.
Josh Olszewicz, seasoned trader, underlines that despite Bitcoin rising above $64,000, the cryptocurrency is not entirely out of danger.
Source: TradingView
Its analysis uses the Ichimoku cloud, a complex indicator that provides a multifaceted view of market dynamics and potential resistance and support levels.
Currently, the cloud remains red as shown above, signaling that the downtrend is still dominant, with Bitcoin trading below this crucial indicator, which now constitutes a significant barrier.
The Ichimoku cloud suggests continued bearish momentum unless Bitcoin can sustainably move beyond this cloud, transforming it from resistance into a support zone.
Olszewicz recommends watching for potential bullish confirmation through the inverted head and shoulders pattern alongside cloud momentum, which could indicate a stronger reversal of the downtrend.
Where will Bitcoin go next?
To further complicate the story, data from analytics firm Santiment highlighted a more nuanced perspective.
It suggests that while there are signs of distribution, overall portfolio activity indicates robustness without significant structural weaknesses.
This could mean that while immediate gains are visible, overall market sentiment remains cautiously optimistic.
Source: Santiment
Moreover, according to the crypto analyst Rekt CapitalBitcoin moves from a price-based capitulation to a time-based consolidation phase after the halving.
This is consistent with historical trends that typically precede substantial uptrends.
This phase, expected to last more than 150 days, could pave the way for a period of more sustained growth, echoing past cycles where prolonged consolidation led to strong bullish moves.
Source:
Read Bitcoin (BTC) Price Prediction 2024-2025
Adding to the complexity, AMBCypto recent reports showed positive signs, breaking out of a falling wedge pattern, suggesting an increase in buying momentum.
This is also supported by data from Glassnode, indicating a bullish signal as Bitcoin’s reserve risk increases in favorable zones historically associated with price increases.
News Source : ambcrypto.com
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