After the U.S
After the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, the price of Bitcoin has a strong reaction, which may surprise many people. Generally speaking, negative news leading to price increases is a strong sign that sellers are losing momentum and near the bottom.
However, in terms of Bitcoin prices, there is still some anxiety hovering in the market, which may mean another decline, possibly the ultimate decline. For example, it is currently unclear whether the US Department of Justice (DOJ) will also take legal action against Coin Security, and what impact this will have on Coin Security's international business.
The debate about bullish Bitcoin is increasing
Nevertheless, bullish signals are strengthening. As JanHappel and YannAllemann, the co founders of Glassnode, wrote in their latest analysis, the Bollinger Bands of Bitcoin almost reflects the current state. On the 1-day chart, BTC prices are still within the absorption zone, between the lower track and the 20-day moving average.
This indicates that this is still a good entry point, "said the co founder of leading on chain analysis services. At the same time, referring to the figure below, analysts warn that traders should pay attention to the expansion of the band, which may indicate that higher volatility is about to occur, which may lead to sudden fluctuations.
Looking at Bitcoin's holdings, Allemann and Happel stated that despite strong reactions to bad news, there is currently no clear direction:
We believe that before approaching FOMC and the market starts positioning for expected output, prices will continue to consolidate alongside open positions.
It is worth noting that next week's Federal Reserve meeting (June 13-14) will be the first time in many years that there has been no clear consensus on interest rate decisions. Since the Federal Reserve began raising interest rates, there has been a clear consensus at every meeting.
According to the CMEFedWatch tool, futures show a 30% chance of raising interest rates and a 70% chance of not raising them. Lack of clarity may also lead to greater fluctuations in BTC prices before making a decision.
BTC recently retested the 200 week moving average (MA) of $25306, but the supply liquidity here is somewhat thin. Furthermore, if prices fall again, retesting the 50 month moving average of $25898 would be very interesting, as liquidity and sentiment seem to be stronger.
It is worth noting that BTC has formed a double bottom at the 50 month moving average. The triple bottom will be bullish. On the other hand, breaking below the 200 month moving average will pave the way for a bear market.
In this regard, BTC will usher in several very important days in the coming weeks. Defending the aforementioned price level is crucial. If held, the next step may be a journey to a bull market paradise, but bulls need to turn the situation around in a relatively short time frame.
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