According to crypto analyst Caleb Franzen, Bitcoin is at a crucial time in the market. While he was previously optimistic about an impending bull market, Franzen has revised his expectations due to recent negative market indicators.
These deteriorating signals force the analyst to revise his forecast, which could mean investors should prepare for challenging times ahead for Bitcoin.
Technical Indicators Point to Downtrend for Bitcoin
The analyst points out that several key technical indicators are currently painting a bleak picture for the near term. The Williams %R indicator, which measures whether an asset is overbought or oversold, suggests that there is no bullish momentum for Bitcoin at the moment.
In addition, the 21, 55 and 200 exponential moving averages (EMAs), which calculate the average of the price over different periods with more emphasis on recent price changes, show a clear downward trend.
Franzen warns that if Bitcoin’s price falls below $54,000, it could lead to further declines towards $50,000. If this prediction comes true, it would be Bitcoin’s lowest valuation since February of this year.
Franzen Remains Optimistic About Bitcoin’s Long-Term Potential
Despite the short-term underperformance, Franzen remains cautiously optimistic about Bitcoin’s long-term prospects. He admits that his earlier expectations of a rapid bull market may have been overly optimistic, and that a strong rally may take longer to materialize.
Still, he sees opportunities for the patient investor. Bitcoin, often referred to as “digital gold,” still has the potential to match or even surpass gold as a store of value, according to Franzen. With gold’s total market cap at around $17 trillion, that would mean a potential appreciation of around 1,300% for Bitcoin, which could push the price of BTC above $500,000.
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Source: https://newsbit.nl/crypto-analist-neerwaartse-trend-voor-bitcoin-maar-lange-termijn-blijft-veelbelovend/
