Mihai Jacob, a well-known market keeper, says the Bitcoin Price Rally who followed Powell’s Friday speech Maybe not as strong as it seemed for the first time. The graphs, he explains, continue to blink signs of weakness that should not be ignored. According to Jacob, the flagship Cryptocurrency can still get a new sharp fall, and a drop below $ 100,000 remains a real risk despite optimism in the short term.
Powell’s speech gave Bitcoin prize a lift, but graphs tell a different story
Jacob explains that in his earlier analysis he noticed the $ 110,000 zone as a Main level for Bitcoin. As long as that level was kept, the wider bullish structure could remain technically intact. Powell’s speech gave a hint of a possible rate reduction, and for a moment the market reacted with excitement, and Bitcoin bounced Just as traders wanted.
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But Jacob quickly asks the difficult question: was that bouncing real strength or just wishful thinking? He advises to act what you see, not what you hope for. And what he now sees in the charts does not correspond to the first joy of the rally. Shortly after the move, Bitcoin returned to the support level of $ 112,000 and knew most of the profits. For Jacob, this suggests that the market may have responded to temporary news instead of Initiating a new wave of growth.
He warns that the bounce is more like a retest of broken levels than a new start of a larger movement. In other words, what seemed like a comeback Perhaps it is a signal that Bitcoin remains weak. Instead of buying buyers, the graph suggests that sellers are still in charge, waiting to push the price lower again.
Why a drop lower than $ 100,000 remains probably
Looking at the bigger picture, Jacob points out that Bitcoin is still trading under the trendline that has been present since April, which emphasizes the shape of the price action, which suggests Possible head and shoulders Pattern forms around the $ 110,000 zone. Although not perfectly formed, it is still enough to make careful traders uncomfortable about what can come.
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For Jacob, the excitement that came from Powell’s speech was probably nothing more than “Assess euphoria‘And he believes that the market sends a completely different message than what the headlines suggest. The idea that Bitcoin would just return The same level of support, Giving late buyers an easy chance is difficult to believe. More likely it was a ‘dead cat bouncing’, a short -lived movement for a new fall.
Jacob makes it clear that his current attitude is neutral in terms of active positions, but his Outlook leans Bearish. Optimism can be tempting, but he insists that discipline requires traders to trust the graphs, not their hope. With Bitcoin who is still struggling under important levels, he sees the possibility of a decrease of less than $ 100,000 as very real.
Featured image of dall.e, graph of tradingview.com