According to the external media review, while the term “bitcoin and encrypted markets are dead” has re-emerged, in terms of price spreads, trading behaviour and several long-term indicators, markets are more at the bottom-up stage than the starting point for a new unilateral fall.
At present, bitcoin has been tested over and over again in the $63,000 area. The article mentions that if the US$ 60,000 falls, the empty space may be even more advantageous and prices may look back on the vicinity of US$ 6.25 million. At the same time, the CLARITY Act in the United States pushed for a slowdown and suppressed industry sentiment, and the market's expectations for its adoption during the year had fallen below 22 per cent.
It's still clear in the trade area.
According to the article, in the recent past traders have been operating in a more ambivalent way: when prices are close to $67,000, they tend to be empty, and when they fall around $62,000, they turn to more. This back and forth concussion is depleting the patience of the diaspora and warming the perception that the “market is over”.
However, according to the commentary, a similar period in history often precedes a subsequent rebound. Long-term rollers are prone to emotional sales, while more stable funds may be absorbed at lower levels.
The moon and the long-term mean lines provide support
One of the signals quoted in the text is from the Tom DeMark Sequence Indicator. The indicator showed a buy-in signal on the Bitcoin monthly map last month. According to the article, such signals were not common, but were more accurately identified at the bottom of the market in 2022.
Another observation mentioned was that bitcoin had been supported on several occasions since 2014 near a simple 50-month moving mean line. According to the article, this long-term mean line has, on several occasions in the past, responded to low cyclical points and is therefore still considered an important reference point.
The momentum indicator returns to historical lows.
The article also mentioned that the Chande dynamic oscillation indicator had fallen back to -71. According to them, this area was often accompanied by panic sales coming to an end.
Overall, the commentary argues that bitcoin may continue to fluctuate between $60,000 and $67,000 in the short term, and that markets may not be able to move out of the shock zone very quickly. However, from a combination of multiple signals, it is now coming closer to the end of the stage rather than the “end of the encrypted market”.