Bitcoin (BTC) and altcoins started the new week with a major decline. While BTC and Ethereum stabilized around $112,000 and $4,200, one analyst noted that this decline was temporary.
Accordingly, CryptoQuant analyst Axel Adler said that the recovery in BTC is temporary and $109,500 is important support.
According to Axel Adler’s analysis, he noted that Bitcoin’s current recovery and state of stability are likely to be temporary.
Stating that the market structure has changed and the Composite Index, a technical indicator, has fallen below -0.4, the analyst explained that this indicates a dominant downtrend.
Adler said he interpreted Bitcoin’s current price action as a simple bounce and a cathartic rally rather than a resumption of a broader uptrend.
The analyst noted that key support for BTC is $109,500, and predicted that if the price holds above this support and the Composite Index breaks above zero again, a renewed uptrend could occur. According to the analyst, if this upward wave continues, the price could rise to the $117,700 resistance level.
“The market structure has changed and the composite index has fallen below the −0.4 threshold. This explains the bear dominance.
The market has moved into corrective mode, with bounces currently being relief rallies rather than uptrend restarts.
Key support within the channel is at $109,500. Maintaining this level and breaking the structure above zero will allow the uptrend to be reestablished with a retest of the $117,700 level.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/what-should-we-expect-for-bitcoin-now-fall-or-rise-cryptoquant-analyst-explains/
