Here is the reason that Bitcoin’s withdrawal is a purchase signal and not a warning from the bear market
Bitcoin (BTC) is traded in the bear lands after a sharp correction, but from a broader perspective, the original is still firmly on the emerging market after it recorded a record level of $ 108,000 in late January.
Now, the main technical indicators indicate that the recent withdrawal may not indicate the beginning of the prolonged contraction, but rather one of the most attractive purchase opportunities in months.
Specifically, the moving average for 50 weeks for Bitcoin works as a decisive support level, helping to maintain the broader upward trend. At the same time, another decisive indicator, a 0.5 -5 tradition level, appears noticeable, continuing to consolidate bitcoin firmly inside the bull cycle lands, According to to Tradingshot.
Bitcoin remains 0.5 Fibonacci, the “golden rule”
Over the past decade, Bitcoin corrections have indicated to the level of Fibonacci tradition 0.5 over and over again to health and regular declines instead of market entries. Historical data shows that every correction respects this level, especially when integrating with MA support for 50 weeks, followed by a strong gathering.
Since the bottom of the bear in August 2015, the few cases in which Bitcoin erupted from the level of 0.5 from the deep bear markets, as is the case in 2018 and 2022, or arose by an unusual exaggeration reaction such as the DIP 2019 driven by Libra 2019 and the correction of Rally Musk in 2021 as shown in the analysis.
Although the severe bitcoin correction may have shook short-term feelings in the short term, the primary art structure indicates that this withdrawal is to correct another system-a purchase sign instead of warning in the bear market.
Unless Bitcoin is closed decisively less than both MA for 50 weeks and 0.5 Fibonacci level, the bull cycle remains intact. The current setting is similar to a low force in August 2024, which also provided one of the best entry points for long -term investors.
Virgin views: Cryptoquant warning from the bear market
However, not all analysts share the same optimism. In contrast to Tradingshot The bullish position, Cryptoquant CEO Ki Young Jo Release A more careful look, warns that the Bitcoin cycle may actually end.
Joe was martyred with a set of standards on the chain, indicating the appearance of the bear market. According to Ki Young Ju, fresh liquidity dries, while the new whales empty bitcoin at low levels of prices.
Moreover, ETF flows were negative for three consecutive weeks, which reduced investor morale.
BTC price analysis
At the time of the press, Bitcoin was trading at $ 82,833, a decrease of 3.2 % over the past 24 hours. On the monthly graph, the losses stand by 15 %.
Detitable feelings also extended to Coptic currency exchange products (ETPS). According to March 17 a report by CoinsharesCrypto Etps witnessed external flows of $ 1.7 billion last week, representing the fifth consecutive week of capital withdrawals.
Specifically, Bitcoin products have formed $ 978 million of external flows last week, which led to the total bitcoin flows over the past five weeks to $ 5.4 billion.
However, despite the prevailing downstream feelings, Bitcoin’s ability to adhere to its main artistic levels leave an optimistic room. Whether the market resumes its upscale course or faces an extended standardization phase that is likely to rely on how bitcoin behaves about these decisive support in the coming weeks.
Distinctive image via Shutterstock
