After $2,000 Drop, Bitcoin Could Undergo a Strong Bounce For These 4 Reasons

bitcoin price

Bitcoin Price Is Primed to See a Bounce

Bitcoin is primed to bounce due to four technical reasons shared by a technical analyst. These are as follows:

BTC Remains Macro Bullish

Even if a bounce isn’t sustained at current prices, Bitcoin’s macro outlook remains optimistic per analysts.

One trader shared the chart below, which shows that Bitcoin has bounced off a pivotal macro level in a sign that the bull trend remains intact:

“$BTC funding and premium index reached the lowest it had been since March 19th yesterday… Except this time we’re retesting a multi-year S/R level with a confirmed bullish break in MS all the way up to the monthly chart…”

Chart of BTC's macro price action with analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Chart from TradingView.com

The fundamentals of BTC also remain bullish, suggesting the asset has room to rally. Raoul Pal, CEO of Real Vision, commented:

“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”

Bitcoin may see further weakness in the short term, but most analysts remain optimistic about BTC’s long-term trend.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Could Undergo a Strong Bounce For These 4 Reasons
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