Bitcoin Momentum Analysis: Comparing Historical Patterns and Current Adjustment Phase
Technical analyst Tony ’The Bull’ Severino and Matrixport have provided insights into Bitcoin’s current market phase. Severino cautions against comparing Bitcoin’s present condition to the 2017 bull run, noting that the 1-month stochastic oscillator indicates a resemblance to early 2018’s bearish trend, suggesting a possible significant correction. Currently, Bitcoin is holding between $81,000 and $84,500 but risks entering a corrective phase rather than repeating a bullish trend. Meanwhile, Matrixport’s report reveals that while Bitcoin traditionally rebounds at a 15% stochastic index level, it currently remains at 25%, signaling that the market may not be ready for a rebound. This comes amid cautious market sentiment due to conflicting geopolitical negotiations and a lack of clear support signals from the Treasury and Federal Reserve amid a 20% U.S. stock market correction. Traders should be cautious and may need to wait for more favorable market conditions before
Bearish
Both Tony ’The Bull’ Severino and Matrixport’s analyses suggest a cautionary outlook for Bitcoin. The stochastic indicators and market comparisons to past trends indicate potential for a significant correction, rather than a repeat of a bullish rally. Furthermore, current geopolitical tensions and lack of supportive financial signals contribute to bearish sentiment. Traders should be cautious about expecting a near-term rebound, as historical rebounds typically align with a stochastic level lower than 25%.