The Bitcoin market has been recently moving in a bearish trend. Its trading price currently stands at $58,521.96 after a drop of 1.44% in the last 24 hours and with a market cap of $1.15 trillion. Its trading volume has surged in recent market activity by 35.05% in the previous 24 hours to $19.4 billion showing increased interest and activity. This comes as Bitcoin forms a "cup and handle" pattern, which could indicate that there is an accumulation phase for investors.
According to a recent tweet, historical patterns suggest that Bitcoin often experiences prolonged sideways movement following its halving events before it breaks out. BTC tends to move sideways for around 160 days after halving before the breakout. Currently, Bitcoin has been in a sideways trend for 125 days now, leading to some speculation that this phase may continue for some time, possibly up to late September.
Nonetheless, several bullish signs have emerged despite this sideways movement. A drop was experienced on August 5th when Bitcoin prices reached $49K and filled the fair value gap where it found support on a major demand area. Ever since then though volumes have remained high although there was little retracement to a high at $62k and back down towards today’s level.
From early March until now, technical analysis reveals that Bitcoin has maintained its uptrend in a higher timeframe while trading within a bullish flag pattern. To sustain this momentum, Bitcoin needs to break and close above this pattern resistance zone at around 68K.
The MACD indicator on the daily chart shows a bullish crossover ready to form, with the signal line almost shifting to below the MACD line as the histogram starts to show some positive readings. This signals a possible short-term bullish momentum. To sustain a longer one in higher time frame , BTC will need some aggressive bullish momentum.
On the Long/Short ratio chart according to Coinglass, the market outlook in the last 24 hours shows a shift of trend as short positions have been outdone by the the long positions. This backs up the building momentum from the buyers as they try to reclaim BTC's bullish momentum.
Many people might be asking whether the $49k dip was the last we witnessed before the potential move towards $100K towards year-end. Currently, amidst global economic uncertainties, Bitcoin remains strong in both its fundamentals and long-term technicals.