According to Beincrypto: Bitcoin (BTC) just recorded a weekly close below $26,500. This means that the price will continue to move below the 200 WMA which acts as a strong resistance.
Bitcoin Still In A Bull Structure But Prepare For Panic
BTC’s June drop is not necessarily pessimistic, BTC is still in the bullish structure of the weekly Super Trend (1W) indicator.
The first DeathCross signal in the weekly chart history is still there and should continue to be watched. Closing the weekly candle below WMA200 as above will make BTC price tend to approach WMA50 in the near future. Specifically, this dynamic WMA50 price is currently in the $23,000 zone.
The Super Trend signal is a rare positive signal on a large time frame for BTC. The green color of Super Trend whether to win DeathCross or not is still a difficult question. However, investors need to prepare for the possibility that BTC may panic sell to the area of 21,800 USD according to the strong support of Super Trend.
As such, BTC is approaching new buying opportunities for both the short and long term.
Bitcoin Dominance has broken through key resistance
Bitcoin Dominance has broken through a key resistance that will be a signal that market confidence is pouring into BTC.
The BTC.D range between 57% and 49% is a special range. In 2021, when the new uptrend kicked in, BTC.D plummeted from 57% to less than 49% quickly. Now BTC.D has just broken the resistance of 49% and is showing signs of returning to this range.
If in 2021, the range of 49% - 57% is a measure of the positive sentiment of the majority to mark the outbreak of an uptrend, then it is likely that a negative sentiment of the same amplitude will occur to end of a downtrend. But the price for that is that many Altcoins will make new lows.
If BTC.D rises now, it also shows that it is difficult for BTC prices to fall deeply because it has become a haven for many fearful investors.
Is there a chance for a surprise Pump this week?
There are a few reasons that this scenario can still happen in the current pessimistic context, specifically as follows:
The past shows that, in the context of BTC price pessimism below $ 20,000 in mid-March, BTC can still launch a new upward momentum.
First, BTC's daily price line is creating a falling wedge technical pattern. This is a price pattern that predicts strong upward momentum as the price moves closer to the end of the pattern. And over the past weeks, BTC has continuously tested the support line of this pattern successfully.
Second, this week is the week that the new CPI and interest rates will be announced by the Fed. If the Fed stops raising interest rates, it can be a "trigger" for cash flow to return unexpectedly. Meanwhile, survey results show that more than 70% support the scenario that the Fed stops raising interest rates.
If combined with BTC.D analysis, then even if BTC has a sudden strong pump, it is still difficult for Altcoins to regain what was lost. In the downtrend, Bitcoin has always shown the role of preserving the portfolio.
