Bitcoin (FED), which has been in a downward trend since March and has had difficulty maintaining increases, has been holding strongly above $60,000 since the FED decision.
However, according to analysts at Bitfinex, Bitcoin's full bullish trend has not yet been confirmed.
At this point, Bitfinex analysts said that the price needs to surpass $65,200 for the downtrend to be broken and the rally to begin.
Analysts said that if Bitcoin breaks above its August peak of $65,200, it will break out of the downtrend and confirm the uptrend.
“Bitcoin is now very close to the August 25th high of $65,200. The reason this level is important is because since the ATH of $73,666 was reached on March 14th, BTC has not been able to break out of a single peak before forming a new low. In other words, Bitcoin has not been able to break out of any previous highs before forming a new local low and has continued its downtrend.
Therefore, for the recent rally to continue and break out of the downtrend, Bitcoin needs to break above the $65,200 peak as soon as possible.”
Analysts also pointed out that spot buying has slowed down and they predict that the price will form a new range at current levels and move within this range in the near term.
“It is entirely possible that the price is now forming a new range close to the current price and consolidating for a while, as we have seen in previous price increases that were initially triggered by spot buying but were later followed by continuous and futures market activity. Another point to note is that spot market buying has slowed down. It is also clearly seen in the chart that the spot cumulative volume delta indicator flattened out when the price crossed $63,500. This suggests that the price will move close to this level in the near term,” the analysts said.
Bitcoin, which rose to $64,700 at the beginning of the week, continues to be traded at $63,420 at the time of writing.
*This is not investment advice.