A crypto analyst is raising concerns about Bitcoin’s recent price jump, suggesting it might not be out of the woods yet. Despite a strong bounce, several indicators point to potential further correction.
Warning Signs for Bitcoin
According to the analyst, several technical indicators are flashing red. A “death cross” – where the 50-day moving average falls below the 200-day moving average – has formed on the daily chart, a bearish signal. Other indicators like the SuperTrend are also suggesting a “sell” signal. Key resistance levels sit around $82,500 (monthly open), $84,000 (descending trendline), $85,800 (50-day MA), and $87,000 (200-day MA).
Resistance and Potential Support Levels
Looking ahead, the analyst points to a significant resistance level at $94,500 based on the Market Value to Realized Value (MVRV) model. This model compares Bitcoin’s market cap to its realized cap (the total value at purchase prices) to predict potential market tops and bottoms.
On the other hand, the Mayer Multiple, another technical indicator, suggests potential support around $69,500. A break above $86,900 could, however, trigger a significant rally, potentially pushing Bitcoin towards $208,550.
Current Market Situation
At the time of writing, Bitcoin is trading at approximately $79,829, down about 4% in the last 24 hours. The analyst’s warnings highlight the need for caution in the current market.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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