Veteran Analyst Predicts Bitcoin’s Market Reversal: The End of the Bearish Trend?

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Veteran crypto analyst Christopher Inks recently offered an insightful and meticulous analysis of Bitcoin’s market structure, backed by an exhaustive charting of the currency’s value fluctuations. Tracking Bitcoin’s progression using daily candlestick charts over recent months, Inks has identified key technical indicators and levels that suggest a possible reversal of the bearish market trend.

This compelling analysis has captured the ebb and flow of Bitcoin’s value, recently hovering around $63,000, framed by two descending trend lines indicative of a bear market.

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Inks posits that a breakout above a particular level might signal the end of the bearish market trend originated at the All-Time High (ATH). This level is critical because it emerges as the intersection of several significant technical elements — the daily pivot point, the superior descending green resistance line, and the two-month range equilibrium.

Inks makes the compelling argument that a breakout and close above the daily pivot point, the descending green resistance, and two-month range equilibrium, could signal that the lowest point has likely been reached. Overcoming this hurdle could herald the end of the bearish trend that commenced from the ATH.

Once this resistance is breached, the next significant resistance is anticipated at $65,541, and beyond that, the $68,000 mark is a realistic target. Breaking past this level, Inks argues, overturns the bearish market structure from March 13th, setting the sights on $69,000 (R1) and $78,000 (R2) as the next possible targets.

In contrast, the critical support level rests at $56,522; Bitcoin needs to stay above it to avoid hitting a new low that would stoke the flames of bearish sentiment.

Inks, emphasizing this support level’s significance, argues that maintaining a higher low now would necessitate a breakout above the $65,541 level while preventing a new low below $56,522. This scenario could solidly back the notion that Bitcoin has hit rock bottom and open the possibility of a new ATH.

This perspective highlights the urgency for Bitcoin to maintain its value over this support level to combat possible further falls and stabilize within its present range. Breaching this pivotal support line could see the price plummet to below $56,000 (S1) and down to $50,90 (S2).

Supporting this deep-dive analysis are a host of technical indicators. The Relative Strength Index (RSI), currently suspended around the neutral 50, points to an ongoing tussle between bullish and bearish tendencies. Neither overbought nor oversold, the market retains the potential for an upward spike if bullish signals gain strength.

The Moving Average Convergence Divergence (MACD) currently illustrates the MACD line beneath the signal line, traditionally an indicator of a bearish trend. However, the proximity of these lines could suggest a forthcoming bullish crossover, contingent on momentum shifts.

Additionally, the Stochastic RSI provides insight into potential movement in either direction, effectively identifying when Bitcoin may enter overbought or oversold zones, a crucial component of short-term price reversal predictions.

Besides the technical analysis, Inks gives a nuanced view of market dynamics. He observes, “The positives of the range are that supply has continued to decrease throughout the bearish market structure.” This suggests that reducing supply juxtaposed with maintaining key support levels may stabilize and potentially hike up Bitcoin’s price. Bitcoin’s trading value at the close of this analysis was $62,902.