The worldwide crypto markets are still gloomy, owing to widespread “extreme fear.” At the time, the global crypto market cap had dropped to $1.25 trillion, down from $1.31 trillion the day before. Bitcoin’s price has dropped below $29,000 once more.
A well-known crypto analyst is warning Bitcoin (BTC) traders that the cryptocurrency is flashing a major bearish signal.
Bitcoin is now trading below a crucial support region that has kept the market optimistic since late 2020, according to analyst Kevin Svenson, who has 106,500 Twitter followers.
He says that in situations like this, people’s biases tend to blind them. Remember, we’re dealing with a BTC macrotrend breakdown. TA stands for technical analysis. This is a symptom of vulnerability. Traders sell into bounces in this type of structure. We’ll most likely spend months going sideways or down, bottoming out.
BTC to be volatile
Although Svenson is bearish on Bitcoin, he believes that the price will not fall in a straight line. Instead, he predicts that the most popular cryptocurrency will trade in a range with unpredictable price activity.
He explains that lot of people are panicked and believe the market will either pump or drop large. The likelihood of sideways volatility is higher. We could stay at low levels for a while. In crypto,’ sideways’ refers to face-melting pumps/dumps over a long period of time with no substantial price movement.
As we wait for the halving, that’s what I foresee for Bitcoin and crypto. In the first six months of 2024, the next Bitcoin halving will take place.
In a recent video, Svenson stated that Bitcoin’s weekly chart displayed a significant volume signature. The increase in volume, according to the crypto analyst, signals that BTC is momentarily carving a bottom. However, he points out that the price of Bitcoin will most likely be determined by the success of the US stock market.
If the stock market continues to rally from here, this will at least be the bottom of that interim rally, wherever it may take us. At the absolute least, it will almost certainly act as a bottom for a long time.
If the S&P 500 begins to fall and tests lower at a later date, it’s probable that this isn’t a perfect signal and that we’ll test only slightly lower, perhaps near $20,000, $22,000, or the 200-week simple moving average.