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Investors are on the lookout for potential catalysts that might spark a rebound as Bitcoin (BTC) and the larger crypto market continue to struggle with persistent pessimistic emotions.
Notably, economists are paying particular attention to signs that might indicate the end of the bear market in its second year.
Particularly, a crypto analyst going by the handle Seth_fin identified two technical indications pointing toward a possibly bright future in an X post (formerly Twitter) on September 16 that inspired confidence.
The analyst pointed out in his article that the Gaussian channel for Bitcoin has changed from red to green, which may be viewed as a positive indicator and a potential reversal of the current bearish trend.
A technical technique used to forecast the direction of price trends in financial markets is the Gaussian channel indicator.
The Bollinger Band Width Percentile has dropped to its lowest level, signaling an expected rise in price volatility, he added in his second statement.
The Bollinger Band Width Percentile, while indicating more volatility, does not indicate the direction of the movement, hence the analyst abstained from providing a particular directional prediction.
Possible bullish triggers
However, he made mention of the historical importance of Bitcoin halving occasions. These occurrences, which lower the payouts to miners, are typically followed by sharp price spikes. The most recent halving took place in May 2020, and it signaled the beginning of a significant bull run for Bitcoin.
Notably, the Bitcoin price halving event is still celebrated as a possible driver of a positive price spike. The first Bitcoin Exchange-Traded Fund (ETF),
which is anticipated to draw institutional money into the top cryptocurrency, may be approved, which is still in the limelight of regulatory developments.
In the meanwhile, Bitcoin is attempting to hold its position above the critical $25,000 support level while extending a consolidation phase characterized by recurrent failures to break above the $30,000 barrier.
The revelation that German lender Deutsche Bank aims to introduce cryptocurrency custody services for institutional customers in collaboration with Swiss fintech company Taurus has helped to push the price of Bitcoin beyond $26,000.
The recent developments in the FTX case, however, have kept the market mood tense. The bankruptcy court gave FTX permission to start selling off its sizable bitcoin holdings.
The mechanics of the Bitcoin market might be severely impacted by this event, perhaps increasing volatility. This large cache of assets contains valuable tokens like Solana (SOL), Bitcoin, Ethereum (ETH), and others.
Bitcoin price analysis
One-day indicators from TradingView that are used for technical analysis support a negative outlook. This indicator’s summary shows a “sell” rating of 11, which is consistent with readings from moving averages (8). In addition, oscillators point to a “sell” at 3.
In conclusion, the capacity of Bitcoin to sustain its price above the $26,000 level will be closely watched since doing so might open the door for a potential upsurge in the near future.
Notice: Nothing on this website should be regarded as investment advice.
3 comments
it will go Up for sure no doubt
The level are pretty accurate and the forecast is good let’s see what happens in the next upcoming 5-6 months
Exciting times ahead! 🚀 Let’s stay optimistic and see where this crypto journey takes us. 🌟 #CryptoFuture”