Despite the recent lows in the Bitcoin market, there has been a resurgence of buyers for the asset.
The Record Low
The Bitcoin market reached a new record local low of $311,111 early this week, May 23rd, according to TradingView, barely 5% away from the May 19th massive selling. However, buyers have been stepping in since May 23rd. Did Bitcoin bottom out, or is this a bear trap?
Bitcoin Bottomed Out as Buyers Stepped In
A careful analysis of Bitcoin shows us what went down in the market last week and what the future holds.
After the dip that took place on May 19th, which saw heavy sell-off to a record low of $30,000, there was the appearance of a long wick on the bearish candle. This suggests buyers stepped in and bought the dip as reviewed in our report setting the market once again in a temporal rally upwards towards $41,139.
Three days later, the market crashed into a new low of $31,111 as indicated in the chart, and another shorter wick appeared. By maintaining a new low and not crashing the record low on May 19th, Bitcoin has been able to prove some theories right that;
Big buyers stepped in on May 19th and again on May 23rd, and that they may have been aggressively buying the dip as earlier speculated.
The market is in an overall bullish ride despite the temporary bearish sentiments.
The market may have bottomed out and may be setting up a new leg for another run.
At the time of this report, Bitcoin is maintaining an increased price of around $39,318, according to Coin360. By keeping this momentum and judging by the Hammer candle appearing on the support on May 23rd, Bitcoin may visit $41,139 soon.
Bitcoin may have genuinely bottomed out owing to the general price increase across all markets since the time of the last market sell-off. An analysis of ETH and BNB coins, both dominant chains in the bull market, will increase the current market’s perception.
Ethereum played an important role in Decentralized Finance (DeFi), which was a key contributing factor of the bullish market, and saw the rise of the coin from a record low of $350 to above $4,000.
May 23 dip plunged below the last dip of May 19th, dropping the price down to a low of $1,732 since the coin price rally. But that dip was quickly bought as indicated by the long wick. Since the plunge, the price has been making steady gains and currently stands at $2,821 to a coin.
Judging by the Hammer candles sitting pretty well on the $2,425 zone, Ethereum is about to make another rally to $3,229 and $3,589 zones again. And also, looking at the MacD and the RSI, the chart looks bullish as MacD has recently made a bullish cross (blue MacD crosses the red from below) and the RSI tilting solidly above 60.
The Exponential Moving Average (EMA) of 50 and 20 appear to be coming together, indicating another potential for a leg up. However, if this does not get maintained over the next few days, a visitation to $2,425 is imminent.
Binance Coin Analysis
Binance Coin (BNB), another top contender in the current bull run that took advantage of Ethereum chain lapses in DeFi, went ahead to dominate the DeFi market with its cheap fees and speedy transaction mechanism.
Like the Ethereum coin, BNB is currently running towards its next resistance at $399. Similar to ETH, it breached its May 19th low to a new low of $234. However, if this momentum gets sustained, we could see the coin making a revisit to $503; else a $298 and $234 will act as support in the event of another market dip.
BNB, which made an impressive gain above 2,000% Year to Date (Y2D) and has retraced more than 100% from its all-time high, is one of the crypto’s most promising coins due to its strategic burning, increasing use case, and applications.
Bottomed Out or Further Dip to Come?
No one knows what the next news will be, whether a new usual China ban FUD – Fear Uncertainty and Death – is around the corner. A new Elon Musk’s Tweet about a new concern or the market resuming its bearish stance could also be in the cards. Whatever the direction of the market, the overall sentiments displayed by institutions and big hands are that of a bullish market over the long term. But on the minor scale, you don’t usually get a big move without experiencing temporal market drawbacks.
Source : bsc.news
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