Last week, Bitcoin and the rest of the crypto market saw a harsh rejection at critical resistance levels. Within minutes, almost all digital assets plunged by 5%, shedding the gains they had seen the day earlier.
It’s a drop that has made some analysts skeptical that the rally will continue.
As reported by Bitcoinist, an analyst noted that the Bollinger Bands indicator is showing that BTC looks almost exactly like it did at 2017’s highs, and 2019’s highs, and the $10,500 earlier this year.
Yet a macro chart shows that the cryptocurrency market is in the midst of securing a technical level that marked 2019’s highs.
This may suggest that while crypto assets may not rally immediately and may actually retrace slightly, the market is on the verge of entering a long-term uptrend.
Crypto Market Is Securing a Crucial Level
The market capitalization of the entire crypto market is in the midst of securing a crucial technical level: the one-month Kijun, a crucial level indicated by the Ichimoku Cloud indicator.
Notably, the level will not be confirmed as support until June elapses in three weeks, but it’s a positive sign nonetheless.
As can be seen in the chart below, shared by a top crypto analyst, the Kijun level has been important to the crypto market on multiple occasions over the past few years.
In the parabolic rally of 2017, the Kijun band acted as a crucial level of support for cryptocurrencies on multiple occasions. And in 2019, it marked the exact top of the rally, when Bitcoin spectacularly peaked at $14,000.
The fact that the crypto market is seemingly preparing to flip this into support bodes well for the bull trend.
Bitcoin Fundamentals: Forming a Healthy Uptrend
The fundamentals also show that Bitcoin and crypto are in the midst of forming a healthy uptrend.
Bloomberg’s senior commodities strategist Mike McGlone recently released a multi-page report on the crypto market, specifically highlighting the increasing fundamental strength of Bitcoin.
McGlone was so bullish on the crypto market that he said that “something needs to go really wrong for Bitcoin to not appreciate.” He attributed this strong assertion to the following factors:
- Bitcoin is maturing into “digital gold,” trading with a growing correlation and market beta to the precious metal. Also, BTC has seemingly been buoyed by the growing amount of money printing by central banks, just like gold has been.
- Volatility is decreasing as futures see continued adoption, suggesting a maturing market.
- Bitcoin is outperforming the “Crypto Gaggle,” showing that it is on a bull market footing.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Crypto Market Secures Technical Level That Marked Bitcoin's 2019 High of $14,000