Analyzing Whether or Not the Next Bitcoin (BTC) Collapse Will Be the Same or Different?
Bitcoin experienced a strong upward movement over the last two days as it gained 43% in value. Before the move happened, analysts predicted that there would be a further upside gains before the move happened. However, some analysts are calling the most recent move a case of price manipulation, as evidenced by the long wicks to the upside.
The most recent bump for bitcoin sent the currency surging above its long-term 200 day EMA, which is causing some analysts to believe that a new uptrend will soon be in force. The present price movement for bitcoin is a sideways movement that could trap some bulls expecting a new uptrend. Further analysis can be gained from the performance of the S&P 500, which some are claiming to be on the brink of a decline. The stock market and crypto have some correlation, which could be made worse from an already precarious position for bitcoin.
Additional clues for bitcoin’s price movement can be taken from BTCUSDLongs, which has now run into the 38.2% Fibonacci retracement level, which means it could be due for a reversal. If the price does indeed reverse, then it will break the uptrend that started in May, 2019. The reversal for BTCUSDLongs is significant, as last time it caused bitcoin to drop below $6,000. The next decline could push the coin below $3,000 as it moves below the 200 day EMA