Bitcoin touched the key support at ~ 40k USD and is now hovering above it. It could play out similarly to the bottom formation in July 2021 at the 30k USD level. If this was the case, we could slowly bleed for a few more weeks until we finally make significant moves to the upside again. The sentiment is extremely bearish with fear conquering the markets led by the uncertainty of what the FED's new policy and interest rate hikes will have for an influence. Heikin Ashi is a great tool to understand broader trends and once this indicates a clear trend reversal, we could see more money flowing into the crypto space again. Being below the 100D MA and 200D MA is a bit worrying, although RSI is almost reaching levels of the 30k low. I would only start worrying about the start of a new bear market if we go below 40k with a weekly close while the key MAs start moving downwards again.
Good luck with your trades! Do not consider this as financial advice.
Good luck with your trades! Do not consider this as financial advice.
