After The Crash Why Bitcoin Could Have More Upside Potential

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Bitcoin holds above the critical support at $ 47,000. Trading at $ 50,067 with 1.6% on the 1-hour chart and sideways movement on the 24-hour chart, BTC appears to be on track to recover in the lower time frames. As many in the crypto space have said, this bull run will be defined by its fast bounces and solid periods.

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BTC moves sideways in the daily chart. Source: BTCUSD Tradingview

Businessman Josh Rager compare BTC’s past price action with the current price. For Rager it is a normal part of bull running for BTC to trend below its 100 day Exponential Moving Average (EMA). During 2017, the cryptocurrency saw at least 3 drops below this metric.

The trader believes investors should “worry” if the price breaks below its 200D EMA. In contrast, BTC never trades below this metric during an optimistic price.

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Source: Josh Rager

Over the weekend, the trader expects a rebound if BTC falls to the average $ 40,000. Currently the 10W EMA is converging with the weekly support level, as Rager explained. This could serve as a good entry point for a long position in BTC and high currencies, as the trader said:

The bottom line could be, but if Bitcoin bounces and then goes down to lower $ 40ks. Would love to buy in that area both $ BTC and highs. As long as price is valid, we could see some major rallies over the coming months as BTC slowly grows.

Meanwhile some sideways move could be the new normalcy of Bitcoin soon. Lex Moskovski, CIO at Moskovski Capital, thinks the recent crash has “cooled” BTC’s important indicators of overheating.

As seen below, Moskovski compares 2017 appropriate metrics with the current market and has determined that Bitcoin is around 44% of possibly reaching a peak according to its high trend. On the contrary, there could be an even more positive momentum after this week’s crash. Moskovski said:

Bitcoin has cooled slightly and according to the main heat indicators has even more now.

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Source: Lex Moskovski

What Could Break the Bitcoin Market Structure?

Economist and businessman Alex Krüger gave further arguments for a long-term BTC bullish case. As Krüger said, this cryptocurrency has seen massive adoption with macroeconomic conditions that benefit it. Since 2020, the thesis of Bitcoin as a store of value has gained a lot of strength among institutional investors.

Krüger arranged two possible scenarios. In one, “major catalysts” are reheating the market, and the price of BTC into a new period of discovery. The economist said:

The first half of this dump was expected, not the second, which was news. Shit happens. But nothing major has changed except healthy cleansing. When waiting for good territory avoid avoiding being optimistic during escapes, or risking chopping head.

In the second scenario, the U.S. government and its Secretary of the Treasury Janet Yellen are launching new regulations on crypto and digital assets. Krüger expects that some “severe” rules will negatively affect the market.



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