On May 12, 2021, Fairlead’s Stockton, who’s an analyst and the one who is investing money in bitcoins that it has been taking $42,000 as a support price for bitcoin. It has been said by him that bitcoin always tries to remain in a state of calm but social media does not. After Facebook CEO Mark Zuckerberg posted a pic of his pet goat whose name is bitcoin, a lot of speculations are being made regarding bitcoins. Many analysts believe that bitcoin prices will touch the moon, and the cryptocurrency market will experience a boom. Well, there are several well-educated and experienced analysts who believe that according to the price charts, cryptocurrencies are going to suffer a deeper pullback before they experience a very high price hike.
The predictions according to which the bitcoin prices may suffer a pullback soon or done on the MACD based histogram’s pullback. The price was even below zero, and it has turned into the bearish market now. MACD is the short form of moving average convergence divergence, which is widely used to understand the gauge trend and strength along with trend changes that may be experienced by the cryptocurrencies in the near future. It has indicated that histogram will experience a downfall of even below zero, and that is what happened soon. It has represented a bearish reversal and also signified a positive territory after a bullish trend change as per Bitcoin Bank Breaker
Fairlead Bitcoin
As every analyst knows, MACD has been a very incredible indicator for the price action of cryptocurrencies, according to what happened in the past. It was in 2014 when it indicated a downfall in the prices of cryptocurrencies, and that is what exactly happened. During November 2018 and August 2019, it showed vertical lines in the price charts of cryptocurrencies, and the prices of cryptocurrencies followed the same. The founder of –, – has indicated that the prices of bitcoins are considered to be a support price at $42,000, and it may also experience a deeper pullback in the near future. Although it cannot be ruled out by the fallback in its prices still, it is going to be a bearish period. There are several other technical indicators that are indicating near-term pain for bitcoin holders.
According to the reports on Investopedia, The most recent minimum and maximum prices will be equivalent to the demand of the underlying asset. When the MACD indicator marks selling the cryptocurrency, it will be very difficult to resist by the holders. According to the reports and the prices of bitcoins, it has already slowed down in the bull market, and its prices have been stuck between the range of $50,000-$60,000 in the past two months. There was an indication of bitcoin prices going even $64,000 On April 14, but it was very short-lived, and it came back down.
There are chances of experiencing a series of announcements on the media platforms like Facebook real soon because the CEO of Blockchain analytics firm CryptoQuant Has posted a tweet that there are institutions who are accumulating bitcoins between the price range of US$48,000-US$60,000 since February. Bitcoin was traded at 56,300 in the price time, and its price was marked at $58,041 on May 19, 2021. The people who were purchasing bitcoins were not able to keep their profits above US$59,000, but the prices have been further restricted near $53,000. The cryptocurrencies may experience a fall or rise in their price is due to the different tweets of various famous people from across the globe in the near future, but for now, they will experience a downfall.
In the End
For now, the fact stands at one common statement; the bitcoin continues to fail at resistance on a price of $58,000, which is definitely not a good sign for bitcoin holders. The visuals in the bitcoin price charts or a hint that its prices may fall further low in the future. The potential drop in the bitcoin prices is indicating towards $48,000, which is the completion of the head and shoulders pattern.
It is definitely a break below the level of $48,000, which will further open its door to the pullback of bitcoin prices to $30,000. As there are several giants like Stockton and Noble, who use bitcoin, have been a long-term bull in the bitcoin price dips, they still prefer not to sell the bitcoins even if it is falling. The focus is less on the major topping formations in the bitcoin price charts and more on horizontal support points to keep themselves engaged in bitcoin trading.
