Bitcoin (BTC) and the broader crypto market continue to grapple with prolonged bearish sentiments, leaving investors vigilant for potential factors that could trigger a rally. Notably, analysts are closely monitoring indicators that might signal the conclusion of the bear market in its second year.
In particular, a crypto analyst known by the pseudonym Seth_fin in an X post (formerly Twitter) on September 16 sparked optimism by identifying two technical indicators pointing toward a potentially bullish future.
In his post, the analyst noted that the Bitcoin Gaussian channel has turned green, which can be interpreted as a bullish signal and a possible reversal of the prevailing bearish trend. The Gaussian channel indicator is a technical tool derived from statistical concepts that predict price trend directions in financial markets.
Secondly, he pointed out that the Bollinger Band Width Percentile has reached its lowest level, indicating an impending increase in price volatility.
“The Bitcoin Gaussian channel just turned green, and we’ve retested the mid-band! Looks like the bear market might be in the rearview mirror. But that’s not all! The Bollinger Band Width Percentile is at its lowest, signaling an impending EXPLOSIVE move!” he said.
The analyst refrained from making a specific directional prediction, emphasizing that the Bollinger Band Width Percentile while signaling heightened volatility, does not specify the direction of the movement.
Possible bullish triggers for Bitcoin
He did, however, reference the historical significance of Bitcoin halving events. These events, which reduce the rewards for miners, have historically been followed by significant price increases. The last halving event occurred in May 2020 and marked the start of a notable bull run for Bitcoin.
Notably, the Bitcoin halving event continues to be hailed as a potential catalyst for a bullish price surge. At the same time, the spotlight remains on regulatory developments, particularly the potential approval of the first spot Bitcoin Exchange-Traded Fund (ETF), which is expected to attract institutional capital into the leading cryptocurrency.
Meanwhile, Bitcoin is making an effort to maintain its position above the crucial $25,000 support level, extending a period of consolidation marked by repeated failures to breach the $30,000 mark.
Bitcoin is trading above $26,000, boosted by the news that Deutsche Bank, a German lender, plans to launch cryptocurrency custody services for institutional customers in partnership with Swiss fintech firm Taurus.
However, market sentiment remains on edge due to recent developments in the FTX case. The bankruptcy court approved FTX to begin the liquidation of its extensive cryptocurrency holdings. This development has the potential to significantly impact the cryptocurrency market’s dynamics, potentially leading to increased volatility. Notable assets within this substantial cache include tokens such as Solana (SOL), Bitcoin, Ethereum (ETH), and others.
Bitcoin price analysis
At the time of reporting, Bitcoin was trading at $26,548, continuing its trend of weekly consolidation. Over the past 24 hours, the cryptocurrency has registered a modest gain of approximately 0.26%.
Regarding technical analysis, one-day indicators sourced from TradingView align with a bearish sentiment. A summary of these indicators suggests a “sell” rating at 11, mirroring similar readings from moving averages (8). Oscillators also indicate a “sell” at 3.
In summary, all eyes are on Bitcoin’s ability to maintain its price above the $26,000 mark, which could pave the way for a potential upward surge in the near future.
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