While bears dominated the market in April and May, we can see a different picture in June
Bitcoin’s nine-week loss streak was something the cryptocurrency market had not seen before, but at the same time, Bitcoin’s 50% loss is not something we should be afraid of after a 90% correction in 2018. Furthermore, we could expect a complete reversal in the coming months as the bearish trend has already lost a large part of its strength.
Volatility is one of the best ways to determine the strength of a trend and the ability of bulls or bears to maintain it. In our case, the volatility of bitcoin has decreased drastically in June compared to May or April.
Decreasing volatility and volume could be signs of an upcoming reversal.
presence of powerful support
Between November and April, bitcoin had no support to rely on, while being largely pushed down by bears. While traders expected a bounce back from the 50-week moving average, BTC’s buying volume was nowhere near it.
For now, we can see the opposite situation with the 200-week moving average, which has not been broken in bitcoin’s modern trading history.
Indicators are pointing to the reversal
Bollinger Bands, Relative Strength Index and other tools used to determine reversal points are showing reversal signals. The RSI has already reversed upwards, and bitcoin has touched the lower boundary of the BB channel.
Both indicators suggest that Bitcoin is oversold. If we combine the decreasing volatility and volume, we can determine that the bears no longer have the same selling pressure on the cryptocurrency, and a slight support from the bulls should push bitcoin above $40,000 and spark a reversal rally. Should give.