Bitcoin In Danger Zone: Bulls Must Hold $27,700 For Price Recovery, Expert Suggests

2 years ago

After a beardown rally that pushed Bitcoin (BTC) implicit the $31,000 level, the largest cryptocurrency by marketplace capitalization has mislaid its bullish momentum and retraced to its erstwhile consolidation level of $28,400. The retracement has been accompanied by a diminution successful trading measurement and a alteration successful marketplace sentiment, which has led immoderate investors to question the sustainability of the caller uptrend.

Is The Bull Trend In Jeopardy For Bitcoin?

According to the trader and expert nether the pseudonym “CJ,” Bitcoin has faced weakness crossed its regular highs, indicating a imaginable reversal successful its bullish trend. This has enactment unit connected bulls, who are present intimately monitoring the terms enactment to place cardinal enactment levels that indispensable clasp to debar a further terms decline.

One specified enactment level is the $27,700, which has acted arsenic a beardown enactment level for BTC. If the terms were to interruption beneath this level, it could awesome a displacement successful marketplace sentiment and perchance pb to a further diminution successful price. According to CJ, if BTC fails to propulsion higher from this level, it could beryllium connected the cusp of a important correction since the lows of 16k.

Furthermore, CJ advises that investors, whether successful a agelong presumption oregon not, should support a adjacent oculus connected the bearish terms enactment wrong the 4-hour and 12-hour Fibonacci Volume Zone (FVG). This portion represents a imaginable absorption country wherever Bitcoin could look selling unit and perchance reverse its bullish trend.

If a bearish terms enactment is acceptable up wrong this zone, CJ suggests it could beryllium an accidental for investors to participate a abbreviated position. On the different hand, if Bitcoin manages to adjacent backmost supra the $29,980 level, CJ believes that the cryptocurrency could beryllium disconnected to the races, indicating a imaginable continuation of its bullish trend.

Is Not All Bad News For BTC

CryptoCon, a salient cryptocurrency analyst, has suggested that it whitethorn ne'er spot overmuch little Bitcoin prices than $28,000 ever again. This assertion is based connected the VWAP (Volume Weighted Average Price), a method indicator that measures the mean terms of Bitcoin implicit a definite period, weighted by its trading volume.

According to CryptoCon, Bitcoin has conscionable breached supra the VWAP, a bullish awesome suggesting a imaginable reversal successful the existent trend. As agelong arsenic this breakout is sustained successful the abbreviated term, CryptoCon believes that erstwhile marketplace cycles bespeak that the lone happening that could instrumentality Bitcoin backmost beneath $28,000 is simply a achromatic swan.

On the different hand, CryptoCon has pointed retired that portion Bitcoin has risen thousands of dollars without experiencing a steadfast pullback, the 3 Week Bollinger Bands inactive bespeak that a instrumentality to the precocious set is apt presently astatine $35,790, arsenic seen successful the illustration below.

According to CryptoCon, erstwhile marketplace cycles person shown that determination were nary ample corrections until the precocious set was reached, truthful if CryptoCon’s investigation is correct, it could suggest that Bitcoin is entering a caller signifier of its marketplace cycle, which could perchance pb to further terms and capitalist involvement increase.