Will the crypto bear market continue, or will we see a rally in the coming months?
Bearish crypto market since the early April bears exclusively hold, supported at $1,000 in the last seven days prevented ETH further decline. The question is whether a rally is possible in recent months or not? Market's analysis by
The bears have controlled the market since early April. The support at $1,000 has prevented Ethereum from sliding further over the last seven days. Is a rally possible in the short term?
The analysis of the market's price history is known as technical analysis.
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The descending line (shown in yellow) has accompanied the RSI 14D indicator for a long time. This line has acted as resistance most of the time and it was not broken until now - except once in March 2022. Since April, when this index fell again below the mentioned line, the market had a continuous bearish phase.
This indicator is currently facing the descending line (in red). If it breaks to the upside, this could also end the bearish momentum for the short term. In that case, a move towards the horizontal resistance at $1,700 could be a potential outcome. If bulls are able to push price above $1700, then reversal of trend would be confirmed.
If the price of Bitcoin drops below $1000 or rises above $1500, it could face a significant resistance or support.
Paraphrase following paragraph: Moving Averages: MA20: $1122MA50: $1499MA100: $2188MA
The RSI 14D indicator's descending line (red) has broken upwards against BTC and the index is moving towards its baseline after the pullback. If the RSI can gain momentum above its baseline, it is expected that Ethereum will perform better than Bitcoin in the coming days. The critical resistance level on this chart is at 0.06 BTC.
The Chicago Mercantile Exchange (CME) and the
The total number of coins that are held on exchanges.
As the coin's value continues to rise, it indicates higher selling pressure. For derivative exchanges, since coins can be used to open long/short positions, a rise in coin's value could mean high volatility.
Since April, the amount of funds in the derivatives market has been rising. This is often associated with increasing volatility because these funds are most likely used to open both long and short positions.