Has Bitcoin returned to its uptrend?

Since the end of last week, there have been positive signs in the bitcoin market, and at the same time, the price has been on the rise; But can it now be said that the long-term trend of the market has changed from a downturn to an upward one, and if so, what levels can further hinder the growth of bitcoin?

To Report The price of Bitcoin yesterday exceeded $ 45,000 after a long period of time and decreased shortly after the market accelerated.

Yesterday, many altcoins outperformed bitcoins, indicating that investors are less willing to take risks as the new week begins. Bitcoin’s dominance of the digital currency market, which had been on a downward trend for the past few days, reached a high of 43 percent yesterday.

Today, however, buyers of the digital currency market seem to have taken a break and are once again following price fluctuations in the global stock market. The S & P500 and Nasdaq stock indexes were almost unchanged yesterday. Bitcoin prices and stocks of companies operating in the global stock market are simultaneously approaching the short-term resistance levels of the market; An issue that could halt the recent uptrend in prices.

Although the state of some technical indicators indicates a further jump in prices, especially for altcoins, the market may still face a downward correction. Atrium, for example, crossed the $ 3,000 level last weekend, reversing its mid-term downtrend.

“The current outlook for the Atrium market is to raise prices in the medium term,” said Katie Stockton, executive director of Fairlead Strategies.

Atrium prices are expected to continue to rise near the $ 3,500 resistance, which is at the same level as the 200-day moving average.

Is it time for the bitcoin market to rise?

As some analytical indicators show, Bitcoin has now reached the bottom of its price cycle. The chart below, published by the Delphi Digital Institute, shows in which time periods Bitcoin’s annual return has been negative; This happened mainly before the price of Bitcoin reached its peak. The jump in the price of Altcoins in the coming days could be a confirmation of the change in market sentiment from a downtrend to a upward spark for the start of an upward correction.

On the other hand, like in 2014 and 2018, it is possible that bitcoin returns will be negative for a few more months. Cross-sectional price fluctuations in declining markets can benefit short-term volatile traders; Of course, as long as the market trend changes completely from downtrend to uptrend.

Delphi Digital wrote in its report yesterday:

Bitcoin has not yet emerged from its recent volatility, but there is a bullish movement among some market investors. This has improved the market outlook for the past few weeks.

Important price levels to keep in mind

At present, the support and resistance levels of Bitcoin are rising with the data on the change of status of Bitcoin investors obtained from the network of this digital currency.

The chart below shows the key price levels based on the purchase price of short-term and long-term bitcoin investors, which can be compared to the current price. The average buy price for investors entering the bitcoin market after the October high (October 1400) is $ 45,900, and this is a significant level of resistance, according to the Golsnood think tank.

Crossing the resistance between $ 46,000 and $ 50,000 can take a lot of short-term bitcoin holders out of harm’s way. However, if Bitcoin continues to fail to stay above this level, some traders may sell at a loss.