Welcome to "Eruptions" with DeFi Lava
Your weekly source of cryptocurrency and financial market news and analysis
Bitcoin has ranged between $18.3k and $20.5k with a week over week price change of -8.16%.
Price action on the 5 day chart (depicted below) compares 2015, 2018, and now. The red line is the 50 ma (moving average), and the green is the 200 ma. We are currently about 110 days from the potential bear market bottom for Bitcoin (BTC) at $17,500 until now. The 5 day death cross (the 50 ma crossing below the 200 ma) looms. At the 5 day death cross in the previous two bear markets, about 125-135 days had passed from the market bottom.
In previous BTC bear markets, price surged and tested the red line within this timeframe. BTC is having some trouble getting enough momentum to rally so far, likely due to the overwhelmingly bearish macro sentiment. Don't be fooled, as Blackrock, Fidelity, and many other major financial institutions are currently rolling out BTC investing services right now. While it is not a popular opinion, we expect a rally up or close to the red line (approx. $31k) in the coming weeks as the 5 day death cross occurs. We expect price to hit resistance initially at this level.
Whether the market bottom is in at $17.5k or not, accumulation continues through these price ranges in anticipation of major financial institutions looking to capitalize on the 2024 Bitcoin halving.