Cryptocurrency analyst Captain Faibik announced that despite the recovery, Bitcoin price is still very weak. This comes after a shift in market sentiment last week as the price of Bitcoin began to surge and eventually claimed resistance at $70,000 before turning back into support. Despite many Bitcoin investors being optimistic about it, cryptocurrency analysts remain unconvinced, believing that the current upward trend is actually only temporary.
Why Bitcoin Price Still Bearish Despite Reaching $73,000
Last week, the price of Bitcoin rose more than 5% to $73,000 before hitting resistance. This naturally led to more positive sentiment after several weeks of negative sentiment and brought much-needed relief to investors who had suffered heavy losses.
Despite this, Captain Paibig does not believe this is cause for celebration and is instead choosing a very conservative stance. Regarding the current upward trend, the cryptocurrency analyst believes that it could eventually continue, with liquidity allowing it to peak between $77,000 and $78,000.
Other than this securing of liquidity, there doesn’t seem to be anything else to suggest that the price of Bitcoin has turned bullish. Even after an uptrend to secure liquidity, the next direction is expected to be downtrend, so a 20% correction is possible. As the analyst explained, this correction could push the price back into the $54,000-$56,000 area.
If this trend continues and prices drop this low, it could mark a new cycle low for digital assets. This clears the current cycle support, which is still at $60,000. Nonetheless, the cryptocurrency analyst notes that bears are indeed still controlling the Bitcoin price, making this a possible play.
Despite the weakness against Bitcoin, cryptocurrency analysts remain bullish on the altcoin market. He explains that while he has stabilized most of his funds, there is currently a significant amount (30%) sitting in the altcoin market, which analysts expect to be more bullish than on Bitcoin. According to the analyst, investors should be patient and wait for confirmation first before making a move.
Featured image by Dall.E, chart by TradingView.com
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