“Bitcoin (BTC) continues to draw a bearish structure,” says Jacobo Maximiliano, market analyst at the Bitget exchange.
The specialist details that bitcoin (and, as a consequence, most of the cryptocurrency market) is based on what he defines as “a very boring laterality”. He clarifies that he uses this expression “in terms of extreme volatility for a couple of months.”
In an analysis that he shared with CriptoNoticias, this scholar of financial markets explains that, if this bearish figure with the shoulder-head-shoulder pattern continues, the price of bitcoin would go “much lower, possibly in two stops: first to the USD 22,000 and then to USD 20,000 ».
Jacobo Maximiliano complements this technical analysis with fundamental analysis data. It says the following: “If by technical analysis this is the most likely scenario, by fundamental analysis, the prospects are not very rosy, since the SEC has sued Coinbase and Binance, two of the most important players in the cryptocurrency market.”
A gap shows bearish bias for the bitcoin price
Jacobo Maximiliano mentions that there is gap (or gap) not closed in the area of USD 20,000. The gaps are common phenomena in financial markets and represent an empty space between the prices of two consecutive trading periods. The gaps They can occur between the closing and opening hours of the markets, due to significant events that alter the price of an asset during the time that the market is not open. In the case of bitcoin, there are usually no gaps in the spot (spot) market as it is traded 24/7. But this gaps they can appear in the traditional stock markets that operate with futures or other derivatives of the digital currency.
The “theory of gaps» is a market analysis strategy based on these phenomena. According to this theory, asset prices typically move in such a way that they “close” these gapsthat is, they eventually return to the price level where the price was formed. gap. In this context, a gap Unclosed refers to a situation where prices have not yet returned to the levels where the price was formed. gap.
In the case of bitcoin, Jacobo Maximiliano points out that there is gap without closing in the area of USD 20,000, indicating that the price of the asset is likely to head to that figure in the future to close it out.
He adds that, beyond his current speculation, “it is important to closely follow news and developments in these areas.” [adopción, normativa, desarrollo tecnológico, competencia y factores económicos]to get a more accurate and up-to-date picture of the cryptocurrency landscape in 2023.”
If bitcoin exceeds USD 30,000, the analysis would be nullified
Although the analyst mentions what he considers the most likely scenario, he admits the possibility that his forecast may not come to pass. According to him, price estimate would be overturned if bitcoin breaks hard through $30,000. In this way, the “figure of return would be annulled.”
A reversal pattern (also known as a reversal or reversal pattern) is, according to his explanation, “a chart pattern that suggests a change in direction in the current price trend of a financial asset.”
If BTC were to break above $30,000, the Bitget analyst explains, It could go towards USD 36,000. The reason, he says, is that there is a gap futures opened at that price “with a second bullish phase up to USD 42,000”.
This information portal has reported other analyzes that indicate, unlike Maximiliano’s analysis, bullish signals for bitcoin. For example, on May 22, the activation of the RHODL indicator was shown. Furthermore, according to some opinions, Technological advances such as Ordinals tokens could be a bullish catalyst for the price of BTC.
Regarding his predictions, Jacobo Maximiliano clarifies that technical analysis must be used together with other tools in order to make informed investment decisions. Who wants to learn more about technical analysis, fundamental and trading basics, You can read more material in the Criptopedia, which is the educational section of CriptoNoticias.