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After a robust rally that pushed Bitcoin (BTC) over the $31,000 stage, the most important cryptocurrency by market capitalization has misplaced its bullish momentum and retraced to its earlier consolidation stage of $28,400. The retracement has been accompanied by a decline in buying and selling quantity and a lower in market sentiment, which has led some buyers to query the sustainability of the latest uptrend.

Is The Bull Trend In Jeopardy For Bitcoin?

According to the dealer and analyst below the pseudonym “CJ,” Bitcoin has confronted weak spot throughout its every day highs, indicating a possible reversal in its bullish pattern. This has put stress on bulls, who at the moment are intently monitoring the worth motion to determine key help ranges that should maintain to keep away from an additional worth decline.

One such help stage is the $27,700, which has acted as a robust help ground for BTC. If the worth have been to interrupt under this stage, it may sign a shift in market sentiment and doubtlessly result in an additional decline in worth. According to CJ, if BTC fails to push greater from this stage, it might be on the cusp of a big correction because the lows of 16k.

Furthermore, CJ advises that buyers, whether or not in an extended place or not, ought to maintain a detailed eye on the bearish worth motion inside the 4-hour and 12-hour Fibonacci Volume Zone (FVG). This zone represents a possible resistance space the place Bitcoin may face promoting stress and doubtlessly reverse its bullish pattern.

If a bearish worth motion is ready up inside this zone, CJ suggests it might be a possibility for buyers to enter a brief place. On the opposite hand, if Bitcoin manages to shut again above the $29,980 stage, CJ believes that the cryptocurrency might be off to the races, indicating a possible continuation of its bullish pattern.

Is Not All Bad News For BTC

CryptoCon, a distinguished cryptocurrency analyst, has suggested that it could by no means see a lot decrease Bitcoin costs than $28,000 ever once more. This assertion relies on the VWAP (Volume Weighted Average Price), a technical indicator that measures the common worth of Bitcoin over a sure interval, weighted by its buying and selling quantity.

According to CryptoCon, Bitcoin has simply damaged above the VWAP, a bullish sign suggesting a possible reversal within the present pattern. As lengthy as this breakout is sustained within the brief time period, CryptoCon believes that earlier market cycles point out that the one factor that would take Bitcoin again under $28,000 is a black swan.

On the opposite hand, CryptoCon has identified that whereas Bitcoin has risen 1000’s of {dollars} with out experiencing a wholesome pullback, the three Week Bollinger Bands nonetheless point out {that a} return to the higher band is probably going presently at $35,790, as seen within the chart under.

According to CryptoCon, earlier market cycles have proven that there have been no giant corrections till the higher band was reached, so if CryptoCon’s evaluation is appropriate, it may recommend that Bitcoin is getting into a brand new part of its market cycle, which may doubtlessly result in additional worth and investor curiosity improve.

Featured picture from Unsplash, chart from TradingView.com