Strong Position and Bullish Breakout Potential
The crypto space continues with the consolidation phase for the second consecutive day with dried volume and depleted volatility. After breaking down from the bullish pattern, the price has failed to gain strength and rise back, signaling that the bears have superseded the bulls. In such cases, the market sentiments tend to become fearful with fewer expectations of a trend reversal towards the north.
The global market conditions are believed to worsen in the coming days, as enormous selling pressure is about to kick into the crypto space. As the panic sellers are constantly selling their crypto at a loss, the tokens are expected to remain less volatile for some time. Therefore, it is quite obvious that the market participants remain bearish on Bitcoin.
However, the Bitcoin price continues to hold some of the crucial levels, which suggests the star crypto is preparing for a bullish breakout very soon. The BTC price is still holding above the 200 Weekly MA line, 21-EMA Weekly line, and the middle line of the Gaussian Channel, which flutters huge bullish signals for the crypto as a very strong bullish bounce in this region may be imminent.
Also Read: Bitcoin Is Yet to Catch Up With Its ‘ Out-Of-Control’ Fundamentals, Says Analyst
Along with Bitcoin, the global market capitalization also sits strongly above $1.1 trillion and also above the 200-day weekly MA and EMA levels. These levels are currently acting as the important support levels that need to be held tight. If they hold it successfully, then the next impulse upwards could be on the horizon, or else one can expect the Bitcoin (BTC) price to test the lower support levels at $20,000 again.