Key Points
- Bitcoin (BTC) reached $62,500 on 8th August, but has since been fluctuating.
- Despite uncertainties, on-chain indicators suggest a predominantly bullish market.
Bitcoin (BTC) experienced a significant rise, reaching $62,500 on 8th August.
However, the cryptocurrency has since struggled to maintain this high value.
Market Reactions
On Thursday, relief gains helped crypto prices recover from recent lows.
Despite this, speculators were unable to hold onto these gains, leading to a pullback to lower values.
As of now, buying control seems to be increasing following significant selling pressure earlier in the week.
However, opinions are divided on whether the heavy losses were a bear trap or a sign of further declines.
On-Chain Analysis
On-chain indicators suggest a predominantly bullish market despite recent uncertainties.
CryptoQuant founder Ki Young Ju noted that most Bitcoin on-chain cyclical indicators have shifted back to signaling a bull market.
He highlighted that Bitcoin’s bull-bear market indicator has turned bullish again following a quick rebound.
This indicator tracks sentiment among market participants and had turned red following Bitcoin’s steep decline to $49,751 on 5th August.
Technical Analysis
BTC bulls are attempting to form psychological support at the $60,000 mark.
However, if the BTC/USDT pair fails to overcome resistance just below the 100-day exponential moving average (EMA), it will attract selling pressure.
On the daily chart, BTC/USD formed a death cross after its downward-sloping 50-day simple moving average (SMA) crossed below the 200-day SMA.
This is often associated with increasing bearish sentiment and a potential sell-off.
However, a death cross doesn’t always guarantee a sustained market downturn.
In the most recent instance of a death cross formation, Bitcoin didn’t enter a prolonged downtrend, but instead registered modest gains.
