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The weekly chart has landed right on the 50-week moving average, confirming a major pullback is here
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The weekly chart has landed right on the 50-week moving average, confirming a major pullback is here
At this stage of Bitcoin’s move, the most important thing to watch isn’t yesterday’s huge bullish candle, but a pullback and confirmation on the higher timeframe. To set the context: two recent events—the security incident at a major exchange and the U.S. midterm elections—have both passed, and the market had already priced in most of the expectations ahead of time. Once these sentiment-driven bearish catalysts came to pass and fear began to fade, the sharp, sentiment-driven sell-off naturally came to an end. That also explains why yesterday saw a massive surge in volume and a sharp rebound.
BTC-0.65%
ETH-1.23%
Everyone is bearish, so why is it still rising? Many people messaged me last night about this rally: Everyone is bearish, so how did the market still go up? The answer is actually hidden in the question itself—precisely because sentiment is unanimously bearish, this level instead became a driver of the rally. The market has always moved contrary to human nature. Here's what happened on the charts: yesterday, two developments sent it down to around 75,000, right at the 50-week moving average. After panic faded, volume surged and price rebounded above 81,000, reclaiming the key 80,000 level. In
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BTC-0.65%
ETH-1.23%
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