Bitcoin price action lately has been ‘awful’, with the asset losing key support levels. This development has led to concerns among traders and investors about the crypto’s prospects in the short term. Analyst Sjuul from AltCryptoGems highlighted that the market is approaching a key level, which will determine Bitcoin’s trajectory in the coming weeks.
Bitcoin (BTC) Price Analysis
For the past 115 days, Bitcoin has been trading within a massive range. According to Sjuul, maintaining support at the lower boundary of this range is essential. A drop below this level could signal a macro bearish shift.
Conversely, holding this support could offer an excellent buying opportunity, potentially leading to a relief bounce within the daily demand zone. One critical factor in Bitcoin’s potential reversal is reclaiming the 1H EMA200. This moving average has acted as resistance during the recent decline.
Sjuul noted that a successful reclaim of the 1H EMA200 would indicate a bullish market structure break. The current price action resembles a massive falling wedge, which bulls must break to prevent further capitulation.
Liquidity and Market Sentiment
The recent downtrend has grabbed substantial liquidity, with the last cluster around $60,000. Sjuul emphasized the importance of a reversal to avoid further declines. Perpetual positions are heavily short, with funding rates green across the board. This environment could favor a short squeeze, offering some hope for a bullish reversal.
Market sentiment has reached very low levels. The Fear and Greed Index stands neutral at 51 points, the lowest in months. This indicates that investors are cautious but not overly pessimistic.
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Conclusion
Bitcoin’s price is trending in a critical phase. Holding the current support level and reclaiming the 1H EMA200 are key for a potential bullish reversal. Market conditions, including liquidity grabs and short positions, suggest that a short squeeze could be on the horizon.
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The post Bitcoin Price Analysis: Is BTC Set for a Bullish Reversal or Further Decline? Key Levels to Watch appeared first on CaptainAltcoin.
