As the price of Bitcoin continues to jump from the level of $60,000s, it is starting to look like the digital asset has found a bottom. While there is still some weakness in the market, as crypto investors remain cautious, there have been a number of recovery efforts that suggest buyers are returning to the market. If this is indeed a macro bottom, then it is only the beginning of what could be the next bear market. However, it is still possible that the price did not drop, and a lower drop may be coming.
There is still a lot of fear in the market
As the crypto analyst Sykodelic explains in the X post, it is still possible that the price of Bitcoin has not decreased, and this is due to many factors. The first of these is the looming US-Iran war which has seen oil prices rise and may have an impact on the crypto market. Even now, disagreements continue about what will happen in the Strait of Hormuz.
Another factor is that the Bitcoin 200 Moving Average (MA) is sitting around $58,000 on the 1-Week chart. This means that it is possible that the bears will try to push the price to this level again, as there is a large support being created there.
The last thing is that the bulls failed to hold more than $74,400, as the price ranged from $60,000 to $76,000 for months. Sykodelic believes that at the moment, the price of Bitcoin looks like the structure that led to the damage from $ 98,000 back in January.
Bitcoin Bulls Are Still in the Game
Despite the growing bear structure, there is still a big opportunity here for the bulls, according to a crypto analyst. They explain that the price may have already bottomed out, suggesting that the recovery from here will be a long-term one.
Other factors that are evidence of this growth are that the level of finance is still good. This means that long sellers are now paying short sellers to keep their positions open, which could be bullish in the short term. Additionally, Coinbase’s premium has moved in the wrong direction and continues to move. Sales have also fallen sharply in favor of buying from centralized crypto exchanges such as Binance.
Given this trend, the crypto analyst believes that even if the price of Bitcoin crashes again, the worst case scenario would be that the cryptocurrency comes back to sweep $60,000. It may eventually clear up to $56,000, but not another major crash as seen in recent times.
Featured image from Dall.E, chart from TradingView.com
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