Bitcoin Bull Cycle Continues Despite Recent Price Dip
Bitcoin recently experienced a 17% decline following a peak at $108,268, dropping to a local low of $92,281 primarily due to the Federal Reserve’s recent interest rate policy changes. Analyst Burak Kesmeci suggests that Bitcoin is not in a bear market and remains in a bullish cycle, as demonstrated by key technical indicators. Currently trading at $97,354, Bitcoin’s short-term outlook is contingent on maintaining levels above critical moving averages.
Bitcoin (BTC) has experienced a notable decline of approximately 17% since its recent peak of $108,268, dropping to a local low of $92,281. This downturn is largely attributed to the United States Federal Reserve’s announcement during its recent FOMC meeting, where it introduced another 25 basis point rate cut. While rate cuts typically project a bullish outlook for cryptocurrencies, the Fed’s reduction of its estimated rate cuts from four to two by 2025 prompted many investors to divest from higher-risk assets. This volatility has sparked concerns regarding Bitcoin’s trajectory amid an ongoing bull market.
Renowned crypto analyst Burak Kesmeci addressed these concerns in a recent post on X, asserting that Bitcoin is far from entering a bear market. Utilizing critical simple moving averages (SMA21, SMA50, SMA200, and SMA365), Kesmeci indicated that despite BTC falling below its SMA21 threshold of $99,565, this drop does not heavily impact its immediate prospects.
Importantly, the SMA50, which presently stands at $91,803, plays a crucial role in assessing Bitcoin’s short-term momentum; a continued closing above this level may suggest a favorable outlook for price gains. Notably, Bitcoin has shown a robust upward trend since early October, climbing from $60,200 to surpass $108,000. Kesmeci emphasized that the distance from Bitcoin’s SMA200 and SMA365 signals that its bullish pattern remains intact, as breaking below these SMAs typically indicates the end of a long-term upward trend. He reassured investors that price corrections of 20% to 30% are not uncommon within bull markets, and thus, the recent pullback should not be a cause for alarm.
Currently, Bitcoin is trading at $97,354, reflecting a modest recovery from earlier declines. Additionally, the asset’s trading volume has seen an increase of 7.35%, amounting to approximately $103.92 billion.
Bitcoin, a decentralized digital currency, has undergone significant fluctuations in its price since its inception. Recently, it reached a new all-time high, only to dip sharply due to external economic factors, specifically the U.S. Federal Reserve’s monetary policy decisions. The Fed’s approach to interest rates significantly impacts the cryptocurrency market, leading to behaviors that often include the offloading of riskier assets during times of uncertainty. As analysts analyze Bitcoin’s performance and trends, the use of simple moving averages provides insight into the current market health and future potentials of the cryptocurrency.
In conclusion, despite the recent price decline following Bitcoin’s all-time peak, the current analysis indicates that the asset’s bullish trend remains intact. Key simple moving averages suggest potential upward momentum, provided that Bitcoin can maintain its position above critical levels. Investors are encouraged to view this price correction in the context of historical trends, which generally encompass fluctuations throughout bull markets.
Original Source: bitcoinist.com
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