- Bitcoin’s price has been experiencing a downward trend from its $75K peak, but signs of a new bullish wave are emerging.
- Technical analysis reveals a large descending channel pattern, with the $60K support zone holding firm.
- The sentiment analysis indicates that the Coinbase premium gap, showing a comparison of demand and supply between the US market and other countries, is a significant factor in the recent price drop.
Bitcoin’s price may be on the verge of a bullish wave, despite recent downward trends. Technical and sentiment analysis provide insights into the potential future of the cryptocurrency’s value.
Technical Analysis: Descending Channel Pattern
On the daily chart, Bitcoin’s price has been caught in a large descending channel pattern, marked by lower highs and lows. While some may interpret this as a bearish reversal and downtrend, the momentum isn’t entirely bearish. The $60K support zone has held firm on multiple occasions, with the market seemingly targeting the channel’s higher boundary. A breakout above this pattern could signal a new bullish trend, while a drop below could lead to a market crash towards the $52K support level.
The 4-Hour Chart: Bullish Momentum
The 4-hour chart supports the daily timeframe analysis. The price has recently rebounded from the $60K support zone and is testing a short-term resistance level around the $63,500 mark. The Relative Strength Index has risen above the 50% mark, indicating a return to bullish momentum. As a result, the $63,500 level could soon be broken, potentially initiating a price rally towards new all-time highs.
Sentiment Analysis: The Coinbase Premium Gap
As Bitcoin’s price has corrected over the past couple of months, many are searching for an explanation. While there isn’t a single cause, the US market provides some valuable insights. The Coinbase premium gap, which measures the difference between Coinbase’s BTC/USD pair and the BTC/USDT pair on Binance, shows a comparison of demand and supply between the US market and other countries. The metric has been volatile, with significantly low values indicating selling pressure from US investors. As long as this trend continues, a bullish continuation may be unlikely.
Conclusion
Despite recent downward trends, Bitcoin’s price may be on the verge of a bullish wave. Technical analysis reveals a large descending channel pattern, but the $60K support zone is holding firm, and the 4-hour chart indicates a return to bullish momentum. However, sentiment analysis suggests that the Coinbase premium gap, showing selling pressure from US investors, could be a significant factor in the recent price drop. As such, the future of Bitcoin’s value remains uncertain, with both bullish and bearish factors at play.
