Bitcoin may have a strong effect - but “bearish divergences” are cause for concern
The Bitcoin price is currently over $ 52,000, the mood in the markets is euphoric. Many expect an increase towards the all-time high - historically, however, a correction is more likely. And it could be tough.
The Bitcoin price is currently over $ 52,000, the mood in the markets is euphoric. Many expect an increase towards the all-time high - historically, however, a correction is more likely. And it could be tough.
Will the September curse strike again?
Bitcoin has been demonstrating tremendous strength for a few days: After weeks of sideways trading, the number 1 crypto currency has finally managed to move above $ 50,000, then over $ 51,000 and hold it there. Then yesterday evening the push over $ 52,000 took place: From $ 51,900, the BTC price broke the critical resistance at $ 52k and moved to $ 52,500 within about an hour. But that's not all: overnight the bulls even managed to climb to as much as $ 52,700 - a new local high.
And while many are now anticipating a break through to the all-time high of $ 64,863, Bitcoin could face a dramatic correction in the next few weeks. That is what data from the past suggests. Because: The month of September has always been fraught with heavy losses for Bitcoin.
For example, "CryptoDude", a pseudonymous technical analyst, warns in a recent tweet of strong bearish divergences in Bitcoin's recent upward movement. Bearish divergence background: The term divergence means that an oscillator or momentum indicator does not confirm the direction of the current price movement. Put simply: the price is bullish, but there are indications of a trend reversal. The analyst therefore advises profit-taking, writes to his more than 45,000 Twitter followers:
“BTC PRICE HAS GONE UP A BIT SINCE YESTERDAY'S POST - THERE ARE SOME WORRYING SIGNS HERE, HOWEVER. [...] STRONG SIGNS OF BEARISH DIVERGENCE IN THIS ENTIRE UPWARD MOVE. I THINK IT MAKES SENSE TO TAKE AT LEAST SOME PROFITS IN THIS AREA. "
But if the rise to the all-time high does not take place - what happens next for BTC?
Bitcoin must conquer this area
Analysts have emphasized several times in the past: The region around 51,000 to 52,000 dollars is a critical area for Bitcoin. Bitcoin must continue to demonstrate strength here - otherwise a decline into the lower 40,000 dollar area threatens. The popular trader “CredibleCrypto”, for example, shares this assessment. He writes to his more than 234,000 followers in a new tweet: After Bitcoin has reached $ 52,000, it is imperative to recapture the region by $ 59,000. If that succeeds, Bitcoin will finally rise to a new all-time high, according to CredibleCrypto:
"52K ARE REACHED. THIS IS OUR “ALL OR NOTHING” REGION. LET'S KEEP THINGS SIMPLE. AS LONG AS WE HAVE NOT LEFT THIS REGION, WE RISK A POSSIBLE CORRECTION TO 40K OR LOWER. AS SOON AS WE HAVE OVERCOME IT, NEW ALL-TIME HIGH. "