The price of Bitcoin has taken quite the blow over the past couple of months. The current market slump has seen BTC record its worst quarterly performance since 2011. Selling pressures have been brutal as the contagion from the various crises across the cryptocurrency market has started to affect the weekly timeframes. However, bulls have an opportunity to capitalize on the recent weakening of the bearish momentum.
Bearish Momentum In Bitcoin Weakening, Can Bulls Capitalize?
In the real world, momentum refers to the rate of change in the price of an asset. For instance, in finance, the term refers to the rate of change in the asset’s price. Since Bitcoin’s price dropped from over $60,000 to around $20,000 in six months, investors have expected a significant decline in its value. However, the first signs of a potential reversal have been spotted on weekly charts.
The trend line of the MACD histogram shows a weakening of bullish momentum. However, it does not signal a clear trend. When the histogram line crosses the zero line, it is considered a bullish signal.
Although a turning green candle can sometimes confirm a significant upside, it doesn’t mean the trend will continue. Therefore, bulls might want to consider the current setup before committing to a move.
When analyzing the weekly momentum chart, it becomes more apparent that the decline in momentum is taking place at a significant level. The weekly chart shows that the weekly trend line shows a negative reading of -0.2.
Although it is still unclear if bulls will regain their upper hand, the third bottom at around $20,000 could be the charm crypto holders were looking for. The bulls need to capitalize on this potential reversal and follow through with a strong push-through.
Although recovery from around $29,000 is considered a strong first step, BTC must convince investors that a recession will justify a return to $50,000 or above. Bulls might want to stop holding their breath if the weekly trend line and the bullish momentum are not intact before the weekends.
Some Analysts Are Not Ecstatic By BTC Rally
Some observers believe that the crypto’s downward trend continues. Roman on Twitter noted that many are now bullish on the market as they have been repeating the same candle patterns for the past eight months.
The break of the $22K resistance is the latest in a series of fakeouts that will mislead some into thinking that the bottom has already been reached, despite the unfavorable trend.
Despite the recent uptick in Bitcoin, the daily trend for the cryptocurrency remains in a downward band, according to analysts at WazirX. The sentiment on the market continues to be very negative, and the daily trend for cryptocurrency remains within a tight range.
According to Will Clemente, a crypto analyst for Blockware, the 200-week moving average could be a key support level that could cause a further decline in the price of Bitcoin. He noted that if the price of Bitcoin continues to fall below this level, it could trigger a further decline.
Bulls Roar on Solana’s 3-day Ascent
On the other hand, after suffering a huge decline in recent weeks, the price of Solana has started to recover. The bulls have managed to construct a three-day rally starting on July 5.
The bulls got a valid entry signal on July 6 after the 20- and 8-day simple moving averages crossed above their respective averages. There was a brief liquidity hunt as well. FOMO traders set their invalidation levels below the standard deviations from the market’s moving averages.
Solana is currently trading near an ascending trendline on the daily chart. However, after exiting its ascending channel, the cryptocurrency consolidates within a horizontal range-bound area. It can then return to the ascending trend by exiting the current consolidation period