The cryptocurrency market remains volatile as investors are once again focused on the steps the US Federal Reserve can take to combat soaring inflation, and markets falter as tension continues in Ukraine.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) price is hovering around the $44,000 support level and traders are hoping that the inverted head and shoulders chart will lead to a continued rally higher.
BTC/USDT 1-day chart. Source: Trading View
Below is a study of what more market analysts see ahead as global problems from inflation to war continue to unfold in the cryptocurrency market.
The trading volume on the balance shows an upward reversal
An insight into what might be ahead of Bitcoin based on Balance Sheet Volume (OBV), a momentum indicator that uses the flow of volume to predict changes in the price of an asset, provided by market analyst and Twitter user under the pseudonym “IncomeSharks,” who provided the following chart, which highlights On the upward reversal of the indicator.
OBV BTC/USD 1-day chart. Source: Twitter
said the analyst
“People are telling me we haven’t hit the bottom yet… It’s more bullish than the last time we went from $30K to $60K. Double bottom, very sharp V-shaped impulse. Price action is just noise. And people listen a lot to Crypto Twitter “.
Ascendant if BTC has $42,000
A similar bullish position to the current price action of BTC was presented by an analyst and Twitter user under the pseudonym “CredibleCrypto,” who posted the following chart on the lower time frame indicating that there is more room for Bitcoin to rise.
BTC/USD on the hourly chart. Source: Twitter
“Strong moves higher, shallow breakouts, continuation. As long as the $42,000 level holds, the wave structure for LTF indicates that we are likely to start the next push higher.”
Related: Fidelity International Launches Bitcoin ETP on Deutsche Boerse
Bitcoin price could rise by 25%
The final piece of analysis that also took BTC momentum into account was provided by market analyst and Twitter user Caleb Fransen, who posted the following chart, which includes the Williams %R oscillator, a momentum indicator that measures overbought and oversold levels.
BTC/USD weekly chart. Source: Twitter
According to Fransen, “When there is a complete transition from oversold to overbought, this indicates momentum, an event that has occurred six times for Bitcoin since January 2020.
The French said
“After a week in advance, the 1-month average return is +25%. Williams %R is trying to complete the 4-week momentum now. I would be very optimistic if Bitcoin (the ‘big’ if) can provide a strong weekly close.”
The total market capitalization of the cryptocurrency is now $1.999 trillion and the Bitcoin dominance rate is 42%.