Bitcoin

Edge

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin has experienced a near 15% rally over the past two weeks, bouncing back from its $55.8k support level.</li> 
 <li>The cryptocurrency’s derivates data suggests a slight bullish edge for the long term.</li> 
</ul>  
<p>Bitcoin has seen a significant rally of close to 15% in the last two weeks, bouncing back from a support level of $55.8k. This rally has seen Bitcoin enter a zone of relatively high liquidity, which has aided the cryptocurrency in reclaiming a position above the 200-day EMA.</p> 
<p>Despite the current bullish edge, any drop below the 20 and 50-day EMAs could potentially delay short-term recovery prospects. Bitcoin recently experienced a breakdown from a bullish chart pattern after reaching the ‘Point of Control (POC)’ – a level generally characterized by the highest trading levels at specific price points.</p> 
<h2 id="a-rising-wedge-breakdown">A Rising Wedge Breakdown</h2> 
<p>Bitcoin has been oscillating between $55.8K and $71.6K for over four months. The cryptocurrency’s last rebound from the upper boundary of this range led to a nearly 21% monthly downturn until 6 July. However, the bulls re-entered the market, sparking an upturn from the $55.8K support level.</p> 
<p>This resulted in Bitcoin forming a classic rising wedge on its daily chart, a pattern that often indicates a short-term trend reversal. As expected, Bitcoin experienced a breakdown after the pattern approached the POC level.</p> 
<h2 id="derivatives-data-indicates-bullish-edge">Derivatives Data Indicates Bullish Edge</h2> 
<p>Despite recent price drops, the dominance of long positions suggests that market sentiment among smaller traders remains somewhat bullish, or hopeful for a recovery. This is reflected in the cryptocurrency’s derivatives data. The RSI has seen a steep downtrend, but has not yet closed below the 50-mark, which would confirm a decrease in buying pressure.</p> 
<p>While the price action is currently above the 20, 50, and 200-day EMAs, any decline below the 20 and 50-day EMAs could trigger a downtrend towards the $60.3K support level. However, it’s likely that Bitcoin would rebound from this support level, given the confluence of the support levels.</p>

Decoding Bitcoin’s Future: Predictions and Factors Driving Its Next Bull Run

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CoinEagle.com

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