Bitcoin’s 8-Year Trendline: Bull or Bear Market Ahead?
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Bitcoin's recent surge to new all-time highs above $120,000 has been met with a correction, leading to analysis of an 8-year trendline that has historically marked previous cycle tops. Crypto analyst MartyBoots highlights this trendline, originating from the 2017-2018 cycle, which accurately predicted the peaks of subsequent bull markets in 2020-2021 ($69,000). The current contact with this trendline raises concerns that the Bitcoin price may have peaked again. Rejection at this level, coupled with weakly RSI divergence turning bullish, a decline in volume, and more rejection wicks, would solidify this indication. However, the analyst notes this doesn't definitively signal a top. A decisive break above the trendline could transform it into support and fuel further upward momentum. Significant buying pressure and large buy orders at $114,000 suggest considerable demand. Despite this, caution is advised, with the analyst recommending risk management strategies like tightening stops, reducing leverage, or hedging until the trendline's influence is resolved. The confluence of factors presents a complex situation, where a bear market is possible but not guaranteed, depending on the price action around this critical trendline. The situation highlights the volatility inherent in the cryptocurrency market and the importance of careful risk management.
(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-8-year-trendline/)
