The price of Bitcoin has broken over the $20,000 barrier for the first time in a very long time when the market opened today. The coin even reached $21,000 for a short time, which sparked widespread excitement among investors.
As of this writing, one bitcoin is worth $20,971, a rise of 11.33% in the last twenty-four hours and 23.8% in the last seven days. What are the next possible next directions that the king token could go?
All Signals Remain Bearish
IntoTheBlock’s data reveals that despite the fact that the market is technically bullish at the moment, all indications are now bearish. Nevertheless, the sentiment among investors is becoming better.
In addition, the Fear and Greed Index, which is a crypto-specific metric that analyzes sentiment using five weighted sources, found that investors’ sentiments about the market touched a monthly high. This index evaluates the mood in the cryptocurrency market. The mood that carries the most weight right now is fear.
My opinions on whether or not this indicates that BTC will go full bullish or if this is merely a bull trap are divided down the middle.
Despite recent gains, Bitcoin is still confronting challenges, such as the possible formation of a US House crypto-focused panel and the widespread layoffs at exchanges as a result of a tighter macro environment.
What Next For Bitcoin Price?
Still, not everyone is on board with pushing for an immediate recovery in digital assets due to concerns about the long-term health of the economy.
The relative strength index (RSI) for Bitcoin also indicates that BTC is overbought at the moment. RSI analysis suggests a possible steep downward trend when the price corrects.
Similarly, the macro markets are encountering significant levels of resistance. A recovery in the U.S. dollar index (DXY) might trigger a sell-off in risky assets like Bitcoin.
Despite the fact that Bitcoin’s price is now below its 200-week moving average, independent market analyst Rekt Capital believes that Bitcoin may have already struck its macro bottom based on historical evidence.
As an interesting aside, independent market analyst HornHairs used data from 2015 to predict when Bitcoin will reach a new all-time high.
The researcher estimates that it will take 1,001 days for Bitcoin to achieve a new all-time high if the present market is compared to the bear market that followed in 2017–2018 and 2021.
But of course, these are merely speculations. Only time will tell what the future holds for BTC.
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