Bitcoin (BTC) is now back on-bullish after having fallen quite deeply for several days, because the basic fears have subsided so that investors’ interest in entering the market has re-created.
Now, based on data from Coin Market Cap (CMC), at the time of writing, BTC has a market cap of $1,015,956,677.202 and a daily trading volume of $44,770,673,017 which still places it as the number one cryptocurrency. However, compared to 2020, the market cap has seen a very rapid rise as institutional interest in BTC has grown.
4 Hour Chart Technical
At the time of writing, Bitcoin which previously had fallen quite deep from its ATH level which technically could be considered as one of the ‘bloody’ downturns that worried some investors, has now slowly built up an attractive gain.
In our technical view, Bearish is still trying to build structure in view of the market and trend dominance, so it will be very interesting for us to find out whether there is still potential for Bitcoin to rally again (following its recent recovery) by observing its reaction at the charted levels. Let’s see.
Here we try to describe it in the 4-hour technical chart below:
Based on the image above, the price is hovering around the crucial $54,000 level where the price reaction action at this level will be a key start in this analysis, to see how investors react to the recent recovery.
In my view, the charted SR levels, $52,000, $54,000 and $57,150, respectively, have the potential to be tested by investors’ initial stance towards the $54,000 support to avoid false signals.
Daily Chart Technical
On the other hand, in the medium term view, Bitcoin (BTC) has now been projected slightly above the Key Support Area quite strongly due to the clarity of Biden’s tax policy which previously has sparked investor concern.
In view of this analysis, the bullish prospects are still being built by the buyers, so in my opinion, the bullish potential will still be better as long as the price is able to stay above the previous Higher Low level, so you need to be aware of false signals in this range when volatility is still low.
The Bearish scheme, the price failed to build momentum for the Bullish Continuation, so it continued to move lower without being able to score new highs, which even needs to be wary of retesting the Key Support Area.
And for the fundamental view, the recent rise was formed due to the return of investor optimism towards crypto along with the clarity of US President Joe Biden’s decision on tax matters so that the crypto market as a whole is trying to recover by sticking to the Bullish and Bearish views analyzed this because technical signal clarification is still needed as long as the price is still trapped in the existing High-Low range.
Crypto, especially Bitcoin, has earned a place in the hearts of big players such as institutions, and even big companies like Tesla and MicroStrategy, so we still see the long-term prospects for this major crypto as strong bullish which requires the patience of its investors.
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Author: Syofri Ardiyanto
Crypto Enthusiast and Investor