Bitcoin (BTC) Faces $89K Test: Will the Bull Trend Hold?
- The $89K-$90K level is critical for Bitcoin, marking previous range lows in its price movement.
- Correlations between Bitcoin and equities have intensified, especially during volatile market conditions.
- A recent bounce above the 4-hour 200MA/EMA suggests bullish potential, but BTC must hold above $89K.
Bitcoin (BTC) is starting its upmove and its liquidation range fluctuates between $89,000 to $83,000 or even lesser than $83,000. On Wednesday, Daan Crypto Trades pointed in an X post that $89K-$90K is an important level because it marks the range lows.
Daan notes that Bitcoin is still behaving similarly to equities and has attracted a great deal of action from investors in response to such a pattern. In the preceding weeks, Bitcoin has been correlated to equities especially during volatile periods in the markets. This characteristic can be seen most especially on weekends when stock markets are closed but BTC is still moving in accordance to stock movement.
Bitcoin Correlation with Stocks
The interaction between Bitcoin and stocks has been more than usual, and that is common during larger corrections. Daan stated that although BTC generally tends to have a positive relation with equities, in volatile circumstances, the growth can be not less than 1:1. Trading strategies should take this into account since it reveals that BTC price action is influenced by external factors and not its fundamentals.
Source: X
The digital currency has recently bounced back and tested the 4-hour 200MA and EMA for the first time since its loss in February first week. These are short to middle-term movement averages and they are a powerful and significant momentum. The technical analysis of BTC indicates that when the cryptocurrency reaches these levels, there is the possibility of further upward movement. However, traders still need Bitcoin to maintain its price above these levels for the recovery to be considered valid.
Successively maintaining the 4-hour 200MA and EMA is a bullish signal that, however, does not necessarily predict a higher trend period reversal. BTC was under bear pressure for several months and we might be seeing the effect of sideways movement here. As it stands, the bulls need to regain control and assert themselves by seeing further appreciation above $89K.
Source: X
Market Volatility Affects BTCs Direction
Bitcoin must stay above the critical $89K-$90K level to solidify this trend as bull. Traders must be aware of fake breakouts since BTC may just be experiencing a liquidity sweep or stop hunting. It is possible for BTC to fall back to those sets of levels if it cannot hold above them;
This indicates that more attention should be paid on it is current movement especially that BTC is in the right direction. Thus, the market activity is still unstable and depends on the fluctuations in the stock market which also affects Bitcoin.
Read more: https://www.tronweekly.com/bitcoin-btc-faces-89k-test-will-the-bull-trend/
Text source: TronWeekly
