Bitcoin – we can probably expect a short-term upswing before bear market trends take hold again , according to some recent analysis that’s just out. An analyst looking at the numbers notes the appearance of a falling triangle pattern & a drop in trading volumes that could be hinting at some kind of market shift on the horizon. This bit of insight is likely to be of interest to anyone looking to adjust their trading strategy in this current bear market.
Analyst Predicts Short-Term Bullish Move
On The Moon Show , an analyst is saying that Bitcoin is likely to have a quick little upswing before it continues its slide downwards in the ongoing bear market. The analyst says that this temporary little uptick is actually part of a bigger picture within the current market cycle, warning that traders should be pretty darn prepared for some wild ride volatility.
The presence of falling triangle patterns on the 8 hour charts does a lot to support that outlook. Typically falling triangles like those we’re seeing tend to lead to a price increase in about 70% of instances, which suggests to us that there’s a good chance of a bit of short term upward momentum for Bitcoin. The fact that we’re seeing a repeating of a technical pattern like this also makes a brief rally a lot more possible.
Trading Volumes and Market Maker Activity
The analyst flags up the trading volumes behind recent price action & points out that green candlesticks do seem to be accompanied by red volume bars – which is a combo that often flags an impending correction rather than sustained growth. The fact that this volume behavior is occurring might be a warning sign to traders about the temporary nature of this particular bullish push.
In addition to that , Market makers may also be trying to take advantage of this situation to unload long positions – though it would set the stage for the price to take a tumble later on. They may be behind the next price spike and subsequent downturn – something an analyst on ‘The Moon Show’ actually pointed out .
Implications for Traders and Market Outlook
Given these dynamics the analysts think the current phase could be a good time for some scalping .The market is probably wrapping up the long selling so there should be some short term trading opportunities popping up with all the volatility. This is especially true for traders trying to chase after a quick profit from price swings – it all comes down to short term price action.
Despite the expected correction the Analyst is sticking with Long positions in Bitcoin, and thats a sign they remain confident in the asset’s longer term prospects. This position speaks to the nuanced view that while a short term dip is possible, bitcoins overall trajectory is still looking bullish beyond any immediate wobble.
Source — The Moon Show: https://www.youtube.com/watch?v=VvhiCQrW8vc