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In the world of cryptocurrency, the market can be a confusing and volatile place. This is especially true for bitcoin (BTC), which has seen its fair share of volatility in recent times. Jackys, a well-known analyst in the crypto community, recently commented on the current state of the market, and his words may be of interest to investors.
Bitcoin’s Potential for Breakthrough to $31,000
According For Zakis, the weekly structure of bitcoin remains bullish, meaning that the overall trend is up, despite any potential downside. He suggests that even if there is a deeper downside break, it could be viewed as a potential higher low in a bullish trend, which should eventually lead to a breakdown of the $31,000 level. However, Jackis also cautioned that this bullish trend needs to be proven and till then investors should remain cautious.
H4:
Definitely a good buyback from the bottom of the HTF range but still remains in a bearish structure
We expect a new LLM until proven otherwise or until we see a solid long LTF structure pic.twitter.com/9VUY79bnPT
— Jackis (@i_am_jackis) May 16, 2023
On the daily chart, Jackys noted that the market just passed a low of $26,500, which could be viewed as a potential divergence. Despite this, however, the overall structure on the daily chart remains bearish, and investors should consider it so until higher levels are reclaimed. They suggest that although there could be a good buyback from the lower levels of the higher time frame (HTF) range, the market is still in a bearish structure. Unless the opposite or a solid lower time frame (LTF) structure forms too long, Zackys expects to see a new lower low.
Furthermore, according to Jackis, the current bitcoin market structure is bullish, but this could change quickly. He notes that the market is currently trading at a premium, which is known as the Golden Zone, compared to the H4 swing. To continue pushing higher, the market needs to show real strength at this level. However, reading current market conditions is challenging, and there are arguments for both bullish and bearish positions.
Bitcoin and Ethereum part ways, correlation hits lowest point in two years
recently reports By Caco, a leading provider of market data and insights, has highlighted an interesting trend in the Bitcoin and Ethereum (ETH) markets. According to the report, the correlation between Bitcoin and Ethereum has reached its lowest level since November 2021. The rolling correlation between the two cryptocurrencies has weakened from 96% to 77% since mid-March, indicating that they are being driven by increasingly divergent idiosyncratic factors.
The report notes that Ethereum has lost momentum since the Shepela upgrade, falling by about 14%, while bitcoin is down by about 11% over the same period. This divergence suggests that the two cryptocurrencies are being influenced by different factors, rather than what they have been in the past.
As of this writing, bitcoin, the largest cryptocurrency on the market, is trading at $27,000, slightly below its 50-day moving average (MA). While BTC has managed to reclaim the $27,000 level, it has seen a minor decline of 1.4% in the last 24-hours.
Featured image from iStock, chart from TradingView.com
