en.bitcoinsistemi.com
Cryptocurrency market analyst Michael Nadeau stated that Bitcoin is once again approaching a critical technical level, and that the price is preparing to move towards the 200-day moving average at $84,000.
According to Nadeau, such movements have been frequently seen in past bear markets, and all previous examples have resulted in lower levels.
However, the analyst pointed out that the current rally has some important differences from past cycles. Nadeau stated that previous bear market rallies typically lasted around two months, while the current rise has been ongoing for over three months. He also said that Strategy, led by Michael Saylor, has been aggressively buying Bitcoin during this bear market, providing support. According to the analyst, the company has stronger capital capacity this time, unlike during the downturn of 2022.
Nadeau also stated that spot Bitcoin ETFs are making a significant difference in the current cycle. Recalling that ETF products were absent during previous bear markets, the analyst noted that while ETF inflows have been limited recently, strong outflows haven’t been observed either. This is seen as an indication that demand from institutional investors has not completely disappeared.
On the other hand, Nadeau stated that technical indicators suggest caution in the short term. Noting that Bitcoin is approaching the overbought zone according to the RSI indicator, the analyst recalled that in recent times, when the RSI was at its current levels, the Bitcoin price was in the regions of $97,000 and $126,000 respectively.
*This is not investment advice.