Bitcoin may be carving out a short-term bottom after weeks of heavy selling, with one market analyst arguing that conditions are in place for a relief rally toward the $100,000–$110,000 range.
Mister Crypto, a trader from New York City recently released a video. said BitcoinBTCThe short-term structural stability of’s shows some signs after what he called a stabilization. “capitulation” Across the market. He said that indicators tied with trader behaviour suggest that big players are opening up new long positions, even though sentiment is plunging to extreme fear. This mix has traditionally preceded bounces in downturns.
Bitcoin is one of the most important technical indicators. Relative Strength Index (RSI) On the weekly chart which is nearing the 30 level. “We have bottomed out for Bitcoin right here. We have been reaching the 30 level. Boom,” He said.
In previous cycles, the analyst pointed out that this zone was often associated with market bottoms. He cautioned, however, that the setup does not necessarily guarantee the beginning of a bull run.
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The $102,000 threshold is the focus
Bitcoin’s current distance from its 50-week moving mean, which is near $102,000, also adds weight to this scenario. This analysis indicates that Bitcoin’s price has repeatedly moved back to this level, after having fallen below it during previous cycles. Now, the expectation is that a rebound could bring prices up to six figures prior to any longer-term trend.
The macro conditions also encourage optimism for the short term. He cited expectations for a quick end to quantitative tightening, as well speculations about a future interest rate cut. These two developments favor Bitcoin and other risky assets by relaxing financial conditions.
But the outlook for longer term remains cautious. According to the analyst, the overall market has entered bear territory. The analyst warned that any rebound could lead to renewed weakness in the future, since broader conditions are yet to demonstrate a clear shift into sustainable growth.
Related: Crypto sentiment moves up from ‘extreme fear’ after 18-day stretch
Crypto sentiment lifts from ‘extreme fear’
Spending 18 days on the island of “Extreme Fear,” the Crypto Fear & Greed Index finally lifted to a “Fear” level 27.
Meanwhile, Bitwise Europe research head André Dragosch has said that Bitcoin could have major upside He said Bitcoin’s current price does not reflect macroeconomic expectations. Bitcoin is now offering an “asymmetric” Risk-reward is similar to COVID’s crash in March 2020 when the prices plummeted before rising strongly. The market, it seems, has already priced an extremely grim global outlook.
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Source: cointelegraph.com
