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Yes, Bitcoin (BTC) Recovered, But Bears Are in Control

Published 2024-05-07, 08:42 a/m
© Reuters Yes, Bitcoin (BTC) Recovered, But Bears Are in Control
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U.Today - Despite a rebound over the weekend, Bitcoin remains under bearish control as it faces multiple resistance levels and high market risk. It saw its value climb amid a weakening dollar, yet the prevailing sentiment on the market remains cautious.

Bitcoin recently tested the 26-day EMA, an important technical threshold. This level is proving to be a formidable barrier, and there is a real possibility that BTC may not break through. If this resistance holds, Bitcoin could see a retest of the $58,000 mark, which has emerged as a strong support level over recent months. Additionally, the 100-day EMA is lurking around $60,000, reinforcing this critical price zone.

The volume is somewhat neutral with a slight downward trend, which does not lend enough strength to suggest a bullish reversal is imminent. This aligns with broader market sentiment, as captured by various risk indicators that continue to point toward heightened caution.

Liquidation of long positions has also been observed, cooling down the momentum on perpetual markets. While this consolidation phase is ongoing, Bitcoin enthusiasts and traders are closely monitoring whether BTC can secure a breakthrough above the $65,000 resistance level. Such a move could potentially reinvigorate market sentiment and pave the way toward $70,000.

However, the overarching narrative remains bearish. Bitcoin's inability to break through key EMAs such as the 26 and 50, coupled with ongoing high-risk signals from market indicators, suggest that bears currently have the upper hand. We are now watching to see if Bitcoin can maintain its hold above the $60,000 mark or if it will succumb to another round of sell-offs, confirming the bearish trend.

This article was originally published on U.Today

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