As we stated a couple of days ago, in the previous Bitcoin Price Analysis, the BTC’s price has started to consolidate around the new support level, giving out hopes in the market for a new trend-setting move. The compression around the new price level (at $42,000) will settle the next move on both sides.
The negative scenario, moving below the $40,000 line, can be considered as a low-probability move as many analysts have stated that we have reached a local bottom and more stability will be injected into the market before we tested a net potential drop. The local bottom indicates that any bearish thoughts have been vanished for now and the market is clear for new adventures on the bullish side.
We expect a compressive move in the next few days, that will probably move along with the moving averages in the chart.
In the day-trading window of the Bitcoin Price Analysis,in the 4-hour candles, we can observe that during the last days, any uptrending move was immediately corrected after some hours. The instant correction in the Bitcoin market created a lot of “return to the average” scenarios.
The “return to the average” strategies indicate that the market has established a secured position around a price level and any divergence from this price level, will return back to the established price level. As we can observe in the diagram below, there are several opportunities, especially when the price enters a new parallel channel. You can exploit this feature for the next day (or hours) and grab some quickly profitable positions.
So in this Bitcoin Price Analysis we expect another consolidating for the next days, before the next breakthrough movement.
Bitcoin Cash has returned in 2020 levels, vanishing every profit from the 2021 season, when it peaked at around $1,600. Right now, Bitcoin Cash’s price flows around $370, after many swings and the bearish feeling doesn’t seem to leave the market soon.
Bitcoin Cash has lost almost 75 % of its value since its all-time high level and around 50 % of the local high level around $750, indicating that there might be an investment opportunity that could go on 400 % returns in the next bullish trend. Practically, there is no evident support zone that will stop the bearish trend and reset the market tone towards a bullish line.
We expect that the bearish trend will continue to exist and shape the next moves in the Bitcoin Cash market. Practically, the next support zone for the market lays below the $300 line. This fact shows us that we should expect more correction in the next period and Bitcoin Cash will be in the bargain for new purchases if included in any portfolio.
The trading volumes have been sustained at low levels, compared to massive flows that lead Bitcoin Cash’s price to high levels. If the market continues to have minor trading flows, the price wouldn’t move to exceptional levels.
Last but not least, the moving averages are positioned in a bearish formation, predicting more correction in the market for the next few days. We expect that the bears will continue to dominate the market and we will be in touch for the next support zone.
Usually, in the short-term windows, we can observe that the market is trying to react in any positive or negative move. In a bearish market scenario, there are usually major downtrend moves, followed by smaller uptrend moves that are made by bullish investors “who want to buy the dip”.
In the Bitcoin Cash market, the positive reactions in the bearish market are extremely weak, proving that there is nothing (even momentum) that will change the negative vibes. The only thing that could halt Bitcoin Cash’s downtrend is investors’ expectations about its bottom. In other words, when investors found out that Bitcoin Cash is undervalued and worth buying, the bottom will be formed and a new trend will be settled.
The volatility in the day-trading window remains at low levels, meaning that there are no special ways to make money in the short term rather than shorting the market. There are no signals to create breakthrough strategies so we could pass this section for now.
MACD index has passed in the red area but there are several misleading facts in that formation. Even if the MACD index has passed in the “Green” area some times in the previous days, this is not correlated with positive momentum in the market rather than a stabilizing move with no real impact or a change towards a positive trend.
The RSI index moves below value = 30, indicating that the market remains undervalued and has hit a local bottom, where only towards upside can go. As we stated in the previous sections, the undervalued asset will change route only there is enough bargain for investors to jump in and create new bullish positions in the market.
Bitcoin has entered another consolidating phase that will shape the next trend in the market. The good news is that many analysts predict that we have reached a local bottom and the asset is considered to be a “worth buy” for now. A negative scenario that will bring the price below $40,000 is also examined but with less probability. We will see in the next Bitcoin Price Analysis!
Bitcoin Cash has entered a bearish phase, vanishing any profit during 2021, landing around $370. The negativity in the market continues to thrive and the expectations are on the lower side while many investors are expecting more correction in the next period. Waiting for the bottom, we should continue to short the market.
Read more Bitcoin Price Analysis here!
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