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Bitcoin Holds Above $57,000 – What Comes Next?

Cryptodnes2024/08/08 14:57
By:Cryptodnes

Following a steep market downturn on August 5th, the cryptocurrency landscape is rebounding.

Key players like Bitcoin ( BTC ), Ethereum ( ETH ), and Solana ( SOL ) have seen notable price increases over the past couple of days.

Julio Moreno from CryptoQuant has observed that Bitcoin is showing potential bearish signals. He shared on X (formerly Twitter) that the bull-bear market cycle indicator has turned bearish for the first time since January 2023. Historically, similar signals appeared during the market crashes in March 2020 and May 2021.

The Bull-Bear Market Cycle Indicator has flagged BEAR phase (high blue area) for the first time since January 2023.

Other periods when it has flagged BEAR phases for a limited period have been the COVID sell-off (March 2020) and the Chinese mining ban (May 2021). It then… pic.twitter.com/hwJRFjJuFg

— Julio Moreno (@jjcmoreno) August 6, 2024

Despite these indicators, CryptoQuant’s CEO Ki Young Ju believes Bitcoin can stay bullish as long as it remains above $45,000. He noted that if Bitcoin holds this level for a week or two, it could recover; otherwise, the risk of a bear market increases.

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Currently, Bitcoin is trading above $57,200, showing a 4% rise in the last 24 hours, though trading volume has dropped by 38%, indicating cautious market sentiment.

Technical analysts suggest Bitcoin might reach $60,000 soon, facing resistance at this level from the trendline and the 200 EMA. A successful breakout could lead to a rally towards $70,000. However, a drop to $54,700 could trigger significant long position liquidations, while a rise to $58,000 might liquidate short positions.

At the time of writing, Bitcoin is trading at around $57,200 after a 11.5% weekly drop and no significant moves in the past 24 hours.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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