Bitcoin – "A dead cat bounce"
Bitcoin shows extreme after hitting a low slightly above 25 000 USD and then erasing a loss while bouncing above 31 000 USD. The recent price action may leave many market participants perplexed and wondering whether the bottom is in and if the trend reverses to the upside. However, we stay adamant in our notion and expect the price to give up its gains soon. Indeed, in our opinion, the recent price action represents “a dead cat bounce” rather than any significant change in market sentiment from to . Therefore, we consider the current valuation of BTCUSD as quite attractive for short-position (re)entry. Accordingly, our price target stays at 25 000 USD.
Technical analysis – daily time frame
is in the oversold area; if it manages to reverse to the upside and penetrate 30 points, then the price of BTCUSD might follow suit and bounce even higher towards the 33k-35k USD price tag (before falling to a new low). points to the upside, which is ; however, it still oscillates in the lower zone. , DM+, and DM- stay . shows peaking conditions or a very powerful downtrend. Overall, the daily time frame is but leaves room for a little bit more bounce in the price of BTCUSD .
Technical analysis – weekly time frame
, , and are all . The same applies to DM+ and DM-. started its growth just recently, suggesting this is not the late stage of the bear market. Overall, the weekly time frame is .
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.