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Is Bitcoin losing steam?

Photo of: Joseph Stone
by Joseph Stone

After touching $48,000 on the stock market, bitcoin is losing a bit of steam. The crypto lost $3,636 in three days, accumulating a 7.57% drop over that period. The fear of investors is that the $17,000 gain accumulated in 4 weeks will be erased under the threat of a bullish trend.

When BTC was entering the correction after reaching $48K, a crypto expert by the name of Rekt Capital had set a decisive bar that he had to defend in the following session in order to be able to maintain the bullish trend. The expert had set the $46,500 line. The expert’s forecast was simple for the August 16 session. If BTC manages to defend $46,500, the bullish trend will continue and $50K and $55K can be reached. Otherwise, the return to $40,000 is to be considered.

Some technical elements are not in favor of BTC. The Relative Strength Index has fallen from 71.03 on August 13 to 56.39 at the time of writing. Its current price ($44,169) is weakening below the estimated 200-day moving average of $45,603.

To measure traders’ sentiment towards bitcoin, the Fear & Greed indicator is used. According to this indicator, there is no fear in the market. The value of the Fear & Greed assessed has remained in the confidence zone for over a week. In fact, some experts, including MichaĆ«l Van de Poppe, believe that the drop is a little slight, as he even envisaged a descent to $39,000-$40,000 before a rebound to higher highs.

This bullish sentiment in BTC is the result of two major bullish factors: the Hash Ribbon and MACD. First, Glassnode has revealed a possible Golden Cross between the 30-day moving average of the Hash Ribbon and the 60-day moving average. If this happens, bitcoin’s bullish movement should continue. In the words of a colleague at Cointelegraph, the Hash Ribbon is

The Hash Ribbon is based on the behavior of the Bitcoin network’s hash rate and is designed to tell investors when the price is about to go up. In simple terms, it indicates when bitcoin is becoming more expensive to mine relative to the basic cost of mining.

Bitcoin’s Weekly MACD has finally been rising in the green for over 11 months. The last time this indicator went into the green was in late 2020. We all know that the rise in that period led to the bull run that drove bitcoin to $64,850.

A $100,000 BTC by the end of the year: Still possible according to Plan B.
Plan B is known for its very bullish model; Stock to Flow. A model that points to the scarcity of Bitcoin to justify its rise in the long run. Based on On-Chain data and Bitcoin’s latest performance, the expert firmly believes that the market’s top crypto will reach $100,000 by the end of the year.