Bitcoin (BTC) Market Analysis

Bitcoin (BTC) has been trading below $100,000 since February 5, facing resistance despite recovery attempts. Recent indicators suggest sellers gaining control, as BTC’s Directional Movement Index (DMI) shows increased bearish pressure.

Potential Reversal Signals

The Ichimoku Cloud hints at a possible reversal if Bitcoin breaks key resistance zones. A bullish return could see BTC testing $97,756, with $100,000 and $102,668 as subsequent targets.

BTC DMI Analysis

Bitcoin’s DMI shows its Average Directional Index (ADX) at 21.2, slightly rising from 15.5 two days ago. An ADX above 25 indicates a strong trend, but Bitcoin’s value suggests weakness, hinting at a transition period.

Currently, +DI stands at 15.5, down from 23.3, signifying dwindling bullish momentum, while -DI increased to 21.9 from 9.2, indicating rising bearish pressure. The crossover of -DI above +DI could indicate a market shift towards a downtrend.

Ichimoku Cloud Insights

The Ichimoku Cloud chart shows mixed signals, with early recovery signs suggested by the blue Tenkan-sen line above the red Kijun-sen line. However, Bitcoin remains beneath the Kumo cloud, signaling a prevailing bearish trend despite possible resistance weakening ahead.

If BTC breaks above the cloud, a trend reversal could be confirmed. Failing that, continued bearish momentum would be expected.

Bitcoin’s Path to Recovery

Recently, Bitcoin dropped from $98,000 to $95,000 due to the Bybit hack, creating a potential golden cross. With short-term EMAs below long-term ones, bearish pressure remains strong.

If sellers maintain control, Bitcoin may retest the support at $94,818. A break below could lead to $93,415 or lower. However, weakening bearish momentum suggests a recovery could be imminent, allowing a test of $97,756, and potentially $100,000 and beyond if upward momentum builds.