While bears were dominating the market back in April and May, we may see different picture in June
Bitcoin’s nine-week losing streak was something the cryptocurrency market had never seen before, but at the same time Bitcoin’s 50% loss is not something we should be afraid of. after the 90% correction in 2018. On top of that, we could see a full reversal in the coming months as the downtrend has already lost much of its power.
Descending volatility
Volatility is one of the best ways of determining the power of the trend and the ability of bulls or bears to keep it up. In our case, Bitcoin’s volatility decreased massively in June compared to May or even April.
The decline in volatility and volume could be a sign of an upcoming reversal.
The appearance of powerful support
Between November and April, Bitcoin had no support to rely on while being pushed down massively by bears. While traders expected a bounce from the 50-week moving average, BTC’s buying volume was not anywhere near it.
For now, we can see the opposite situation with the 200-week moving average, which has not been broken in modern Bitcoin trading history.
Indicators are hinting at reversal
The Bollinger bands, the Relative Strength Index and other tools used for determining reversal points are showing reversal signs. RSI has already reversed upward, and Bitcoin has touched the lower border of the BB channel.
Both indicators show that Bitcoin has been oversold. If we add the declining volatility and volume, we can determine that the bears no longer have the same selling pressure on the cryptocurrency, and any support from the bulls should push Bitcoin back above $40,000 and fuel a reversal rally.
