Over the past 24 hours, the cryptocurrency market has witnessed bitcoin cementing its position in the digital financial space.
Amid a broader cryptocurrency sell-off, bitcoin offered another example of its infamous volatility, plunging sharply toward the $40,000 region.
The leading cryptocurrency experienced a 8% decrease to $41,900 before reversing some of the losses and opening Monday's trading session down 5% to $42,090.
bitcoin momentum could lose steam
CoinGecko price updates show that bitcoin has only shown slight variations during this period, indicating that it is in an equilibrium phase after its recent price spikes.
The subtle fluctuations in the price of bitcoin indicate not only a breakout but also an opportunity for market players to assess the situation as it stands.
Well-known cryptocurrency trader Josh Olszewicz, who goes by CarpeNoctom on
bearish case = 35.7k (daily Kijun)
SL on longs is probably prudent around 42.8k pic.twitter.com/NqyLsJS9Nq
—Josh Olszewicz (@CarpeNoctom) December 10, 2023
Based on his analysis of the Kijun daily line, a fundamental technical signal in the world of cryptocurrency trading, Olszewicz maintains a gloomy outlook.
A crucial medium-term trend indication in cryptocurrency trading is the Kijun Line, which is a component of the Ichimoku Cloud indicator.
By averaging the highest high and lowest low over 26 periods, it helps traders determine support and resistance levels, as well as the general direction of the trend.
bitcoin slightly below the $42K level today. Chart: TradingView.com
Prices can suggest a bullish or bearish trend depending on whether they are above or below the Kijun Line.
When Goichi Hosoda created the Ichimoku Cloud in the late 1930s, the Kijun Line was one of the main components.
Share this chart with your financial advisors (and the disclosures below).
Depending on your risk tolerance and investment objectives, adding bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoinEven in small increments like 0.5%, 1.5%, 2.5% and 3%, it has the potential to alter the dynamic of the traditional 60/40… pic.twitter.com/mfLFsmD4LK
—VanEck (@vaneck_us) December 10, 2023
Meanwhile, prominent asset management firm VanEck has emphasized that bitcoin (btc)'s historical performance does not guarantee future results.
Dark road ahead?
This caveat is important because VanEck is investigating the possible effects of adding bitcoin to conventional portfolios, which puts the typical 60/40 investment approach to the test.
Justin Bennett, another cryptocurrency trader and analyst, is issuing an alert that bitcoin (btc) could reverse its upward trajectory following another surge.
Share this chart with your financial advisors (and the disclosures below).
Depending on your risk tolerance and investment objectives, adding bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#bitcoinEven in small increments like 0.5%, 1.5%, 2.5% and 3%, it has the potential to alter the dynamic of the traditional 60/40… pic.twitter.com/mfLFsmD4LK
—VanEck (@vaneck_us) December 10, 2023
Bennett informs his 110,600 X social media followers that bitcoin may rise once more before making a correction.
The analyst provides a chart showing how, on the daily chart, bitcoin is currently trading within a sizable ascending channel, with the pattern's horizontal resistance situated at approximately $48,000.
Based on the trader's chart, it appears that he believes that after reaching his bullish target, bitcoin will fall below $38,000.
(The content on this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk.)
Featured image from Pixabay
