Mihai Jacob is a well known market observer. He says that the Bitcoin rally following Powell’s speech on Friday was a good thing. may not be as strong as it first looked. According to him, the charts are still showing signs of fragility that shouldn’t be ignored. Jacob believes that Bitcoin’s main cryptocurrency may still experience a sharp fall. Jacob also says a decline below $100,000 could be a serious risk.
Powell’s Bitcoin Speech Lifted Prices, Charts Show a Different Picture
Jacob says that during his previous analysis, he had noted the zone of $110,000 as an important area. key level for Bitcoin. The bullish pattern could remain intact as long the level is maintained. Powell’s address hinted that a possible interest rate cut was on the way. The market responded with excitement for a short time. Bitcoin bounced As traders wanted.
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Jacob asks himself the question, was this bounce a real one or just a wishful thought? Trading what is seen, and not hoping for it, is his advice. He says that what he’s seeing now in the charts doesn’t match his initial excitement about the rally. Bitcoin quickly returned to $ 112,000, wiping out most of its gains. Jacob believes that this could be a sign of the market reacting more to short-term news than anything else. initiating a new wave of growth.
He says that the bounce is more of a test to see if broken levels are still there than an entirely new start. The question is, in other words: What? seemed like a comeback It may be that the chart is a sign of Bitcoin’s continued weakness. The chart shows that sellers still control the market and are waiting for a price drop.
The Chance of a Drop below $100,000 is Still High
Jacob, looking at the larger picture, points out that Bitcoin trades still below the current trendline which has been established since April. Jacob also highlights the form of price action that suggests an upcoming correction. possible head-and-shoulders Around the zone of $110,000, a pattern has begun to form. Although not perfect, the pattern is enough to cause traders to be uneasy.
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Jacob’s excitement over Powell’s remarks was probably nothing more than “rate cut euphoria“, and he thinks the market is giving a different message than what headlines indicate. Bitcoin’s return is not a reality. the same support level, It is hard for him to accept that late buyers would be given another chance. Most likely it was a “dead cat bounce,” An attempt to gain a temporary advantage before another failure.
Jacob’s current stance in regards to active positions is neutral, but Jacob does not make it known that. outlook leans bearish. He insists, however, that traders must be disciplined and rely on the charts rather than their hopes. Bitcoin’s struggles under the key levels make him believe that a drop below $100,000 is possible.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com
