Bitcoin’s bearish trajectory is currently making many worried about what the future trajectory of the token will be.
Analyst Ali Martinez via X says, “History shows that Bitcoin often bounces off the 50-week moving average, which currently stands at $74,700.”
Taking this prediction into consideration, it is likely that Bitcoin prices will fall further before making a come back. At the press time, the OG-crypto currency is trading at $81,305.24, down 5.78% as compared to the same time last day.
Bitcoin Short Term Analysis: What To Expect?
As analysts keep a careful eye on important technical levels and market conditions, the short-term price projection for Bitcoin is still ambiguous but encouraging.
The 50-week moving average, which has historically served as a solid support level and has resulted in price rallies, is currently being tested by Bitcoin. There may be a brief rally toward higher resistance levels if Bitcoin stays over $74,700, which might take the price back above $80,000.
Its course, however, may be influenced by external variables including macroeconomic events and regulatory changes as well as the general mood of the market. A retest of lower levels may take place if the market declines or if Bitcoin is unable to hold onto support; $60,000 is a crucial support zone.
Technical indications, investor sentiment, and outside market forces will all have a significant impact on Bitcoin’s price in the near future, so traders must remain vigilant about possible volatility.
Also Read: Michael Saylor Says “Sell a Kidney if You Must, but Keep the Bitcoin” As BTC Drops Below $80,000
Bitcoin’s Upwards Movement: What Can Fuel It?
Future institutional adoption, regulatory certainty, and technology breakthroughs are three major variables that could propel Bitcoin’s growth.
First, demand will rise as more big businesses and institutional investors include Bitcoin in their holdings. This will add respectability and substantial funding.
Second, governments around the world may allay fears, draw in more capital, and guarantee stability in the long run by enacting simpler and more advantageous policies.
Last but not least, advancements in technology like the Lightning Network, which increases Bitcoin’s scalability and transaction speed, may make it more useful and accessible for daily use, increasing its worth even more.
Together, these elements may provide Bitcoin the boost it needs to increase in price and usage, solidifying its position as a widely used asset in the world economy.
Also Read: Robert Kiyosaki Says “America’s Bankrupt” Calls Bitcoin A “Money With Integrity” Amid Market Dip
Technical Indicators Show Glim Scenario
The present sentiment for Bitcoin is bearish, according to technical indicators, and the Fear & Greed Index is at 16 (Extreme Fear). Over the past 30 days, Bitcoin’s price volatility was 4.13%, with 13 out of 30 (43%) days being green.
With nine technical analysis indicators indicating optimistic signals and twenty-four indicating bearish indications, the overall sentiment for the price projection of Bitcoin is pessimistic.
An indicator that is widely used to determine if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum oscillator. The RSI score is at 25.46, indicating that the Bitcoin market is oversold. The RSI indicator predicts a decline in the price of Bitcoin.
Also Read: Bitcoin’s Fear and Greed Index Hits Over 2 Years Low, Will Prices Fall Further?