Author: Joshua Aldio, Business Associate Tokenomy
Bitcoin slipped below $49,000 on Thursday after briefly returning above $50,000 on Wednesday, with one metric placing the crypto market on the “extreme fear” end of the scale following last week’s crash. The Fear and Greed Index, which measures market sentiment, hit its lowest level since July after BTC dropped as low as $45,000 on Friday, with some cryptocurrency analysts and investors using this as a key signal to buy.
With Bitcoin prices still lingering below the $50,000, investors are looking for silver linings in the coming months. Popular Crypto commentator Lark Davis has laid out seven reasons to be bullish about Bitcoin in the next few weeks, Tweeting that major industry news like a spot ETF, combined with lengthening cycles, will see Bitcoin’s price continue to rise into 2022.
Bitcoin Technical Analysis
Bitcoin reached its new strong support level at $46,800 on Monday (13/12) morning, while the deep and long rejection at $44,000 indicates that Bitcoin still has bullish power.
The above analysis indicates a potential reversal chart pattern called inverted head and shoulders aiming at the leg of the pattern at $57,600. This movement caused a correction to $47,000 to create a new swing low, confirming the pattern. As we see on the chart, the $47,000 also becomes an unfilled order that indicates the price will move reverse on that area. Bitcoin’s price movement is still in a healthy bullish correction wave.
As the chart above indicates, Bitcoin’s price has also accumulated in the Fibonacci retracement golden ratio at 1.618. This indicates that the reversal movement will occur in the future.
We see also that Bitcoin’s price has formed the Hidden Bullish divergence based on Stochastic and the price action.
By this analysis, Bitcoin has the potential to grow to $57,000 with more confirmation of the price action.
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