The strong rise of the USD makes the community fear about a not so optimistic future picture for Bitcoin. However, many factors show that, after facing a strong bearish momentum, BTC will start an equally brilliant uptrend.
On the weekly chart, there is a special signal that 4 red candles have appeared in a row, something that has never happened since June 2020 until now.
Besides, this sell-off isn’t really over yet, so $30,000 will most likely be BTC’s next target. Therefore, the $40,000 price area changed from a potential support area to become an important resistance area for a strong bearish momentum, about to explode in the market.
According to the Elliott principle, BTC is forming the 5th wave of the bear wave cycle so the current price action of this coin is considered to be a perfect fit. If the price of Bitcoin moves according to such a scenario, perhaps the downtrend has not really ended and the short-term BTC price forecast will not be really optimistic.
Comments of market experts
Analysts in the market are trying to find more clues about the direction of BTC’s next move on the chart. But perhaps in the short term, BTC still faces more downside risk.
Rekt Capital, a famous BTC analyst on Twitter, said that Bitcoin has retested 2 times and continued to retest a 3rd time. He hopes that in this retest, Bitcoin price does not break the support area created by the leading line. Span B of Ichimoku indicator to avoid price downtrend.
Renowned analyst Cheds, author of the book Trading Wisdom realized that the structure of the downtrend market in 2018-19 and earlier this year was similar. So, if Bitcoin holds above $37,500, the bullish history will most likely repeat itself.
Inactive supply hits record high
Another hugely exciting news from Glassnode is that the supply that has been idle for a year or more has reached 64%, a new record.
This shows that long-term holders are still acting on their strength of holding despite the negative market movements. Following the HODL Waves chart from Glassnode, holders holding 1-2 years have started to increase sharply from 10% to 15% and holders holding longer are also increasing in the first quarter of this year.
So, BTC may still be threatened by the bears in the short term, although in the long term the coin is likely to see a strong rise in price, starting a new era of brilliance.