BTC - respecting the bear market resistance!Here's a quick comparison of two periods in bitcoins history
The current market period appears to unfold similarly to the one observed in 2021. If this trend continues, the market will likely experience a downward movement, potentially leading to a decline in value to 13.5k.
While it's true that history doesn't necessarily have to repeat itself, it is often observed that historical patterns tend to rhyme with the present.
Moreover, the price of Bitcoin was recently rejected from the bear market downtrend resistance, indicating a potential move to the previous bottom of $15.5k, which is consistent with the concept of the price following a pattern reminiscent of the 2021 summer period. It's also worth mentioning that the S&P 500 has been showing some weakness, and since BTC typically moves in lockstep with the S&P 500, it can be prudent to monitor its movement.
The bear market probability index is currently at an all-time high, which suggests that the ongoing rally could be considered the biggest bull trap ever witnessed in the history of Bitcoin. While relying on a solitary model is insufficient for drawing definitive conclusions, numerous indicators suggest a downward price trend in this case.
The US interest rate has reached the same level as it was during the onset of the 2008 Financial Crisis market decline. This should be taken into consideration. Despite this, on Twitter, someone claims almost every other day that BTC will reach 100k soon. However, in my opinion, this is complete nonsense. Given the current state of the financial market, it's not ready for a sustained uptrend.
Lastly, the market is experiencing a notable increase in fear, likely due to multiple factors simultaneously impacting the market. Based on historical precedent, it is reasonable to anticipate significant downward market movements should prior trends repeat themselves.
With regards to DXY
The current market analysis indicates a significant double-bottom reversal in the DXY index, with expectations of reaching a minimum index level of 105 soon. Moreover, should resistance zone 1 be surpassed, a subsequent movement towards resistance zone 3 is expected!
It is crucial to note that if the DXY index maintains its upward momentum, it may exert considerable downward pressure on both the stock and cryptocurrency markets. Consequently, it is advisable to closely monitor the movements of the DXY index, particularly for those involved in stock or cryptocurrency investments.
