Is the Bitcoin Uptrend Coming to an END?
Bitcoin has been in an exceptional uptrend since October 2020. Let's find out if this bull market is coming to an end and what could happen next!
Is the Bull Market Coming to an END?
When Bitcoin is in an uptrend, the 150 EMA on the 4h chart acts as a mobile support. Bitcoin has kept above the 150 EMA ever since breaking above the $10,000 price range in October 2020! The coin has retested this support multiple times but never went below it significantly. Therefore, if Bitcoin closes around 10% below the 150 EMA, it would mean that this uptrend has come to an end.
What Happens Next?
This doesn't necessarily mean that we will have a bear market. We may continue to consolidate instead. Further proof that we may be in a ranging market instead comes from the indicator Williams %R. Williams %R is an oscillator that finds overbought and oversold zones. As with any momentum oscillator, it works best in a ranging market. Ever since Bitcoin got rejected by the $42,000 level, Williams %R has been working very well. If we do drop below $30,000 we may see a bear market, however, it shouldn't be very severe and we should still hold above $20,000. Thus DCA may be the preferred investment method over the coming weeks.
A consolidating Bitcoin market can be a positive development for the crypto world. It may give altcoins enough time to catch up and make big moves; ETH, AAVE, SNX, LINK, and FTT, among others, have already started a strong uptrend. Additionally, this gives Bitcoin time to consolidate its massive gains over the past three months.
Is the Bull Market Coming to an END?
When Bitcoin is in an uptrend, the 150 EMA on the 4h chart acts as a mobile support. Bitcoin has kept above the 150 EMA ever since breaking above the $10,000 price range in October 2020! The coin has retested this support multiple times but never went below it significantly. Therefore, if Bitcoin closes around 10% below the 150 EMA, it would mean that this uptrend has come to an end.
What Happens Next?
This doesn't necessarily mean that we will have a bear market. We may continue to consolidate instead. Further proof that we may be in a ranging market instead comes from the indicator Williams %R. Williams %R is an oscillator that finds overbought and oversold zones. As with any momentum oscillator, it works best in a ranging market. Ever since Bitcoin got rejected by the $42,000 level, Williams %R has been working very well. If we do drop below $30,000 we may see a bear market, however, it shouldn't be very severe and we should still hold above $20,000. Thus DCA may be the preferred investment method over the coming weeks.
A consolidating Bitcoin market can be a positive development for the crypto world. It may give altcoins enough time to catch up and make big moves; ETH, AAVE, SNX, LINK, and FTT, among others, have already started a strong uptrend. Additionally, this gives Bitcoin time to consolidate its massive gains over the past three months.
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