Bitcoin (BTC) is attempting to extend its recovery by rising above the psychological mark at $50,000, but several popular analysts believe that BTC could remain range-bound for a few weeks or even months.
On-chain analytics firm CryptoQuant said that Bitcoin “whales are still depositing BTC to exchanges.” This simply indicates that whales are setting themselves up to react at short notice depending on which path the price elects to take.
The sharp correction of the past few days has pulled the Crypto Fear and Greed Index to 16, which indicates a sentiment of “extreme fear.” Some believe the current fall looks similar to the March 2020 crash.
However, CoinCorner CEO Danny Scott said that Bitcoin’s fall was due to the liquidation of positions by gamblers and not because of sentiment. According to him, the sentiment is “still very bullish.”
After the most receshakeout, could Bitcoin start a strong recovery and lead crypto markets higher? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke below the uptrend line and the psychological support at $50,000, which may have resulted in panic selling by traders. Although bulls purchased the dip aggressively, they are finding it difficult to push the price above $50,000.
The downsloping 20-day exponential moving average ($55,551) and the relative strength index (RSI) near the oversold zone indicate that bears are in command. The sellers will attempt to flip the uptrend line into resistance….