đ Bitcoin Price Dips Below $43K: What's Next for BTC? đ
In the wake of spot ETF approvals, Bitcoin experiences a downturn, slipping below $43,000 in the last two days. Renowned Trading Guru John Bollinger evaluates Bitcoin's recent bullish leap in the ongoing rally, shedding light on potential scenarios for the BTC price. Let's delve into the insights shared by expert Benjamin Cowen and what the future might hold for the cryptocurrency market.
đ Analyzing Key Indicators: 20-Week SMA and 21-Week EMA
According to Cowen, meticulous chart analysis involves monitoring crucial lines like the 20-week Simple Moving Average (SMA) and the 21-week Exponential Moving Average (EMA). These indicators provide insights into market trends and, at present, suggest a potential challenge for Bitcoin around the $36,000 mark. Cowen emphasizes historical patterns, noting that mid-January tends to witness corrections or drops in Bitcoin prices.
đĄ Crucial Levels to Watch: Caution Around $42,000
While pinpointing exact prices remains challenging, Cowen highlights the importance of keeping an eye on the $42,000 level. The 20-week SMA, currently at $42,000, becomes a critical threshold. A weekly close below this level could increase the likelihood of revisiting the bull market support band. Cowen acknowledges the difficulty in predicting short-term price actions but urges vigilance around this crucial level.
đ Historical Patterns and Logarithmic Regression Bands
Cowen draws parallels with historical examples, showcasing similar patterns where Bitcoin undergoes a slow rise in price followed by a dip, a trend observed in mid-January. The discussion extends to logarithmic regression bands, emphasizing their significance on the chart. Bitcoin is approaching a level deemed crucial by Cowen, prompting caution and anticipation of a potential price drop.
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