In late August, Bitcoin’s price on the monthly chart confirmed a move out of the overbought zone of the stochastic, which could spell disappointment for Bitcoin bulls. Analysts at Fairlead Strategies reached this conclusion, according to CoinDesk.
Analysts say the formed signal often indicates the completion of a local top. They pointed to a similar outcome in late 2017 and in early 2021.
The decline in the stochastic indicator suggests that the bottom formation could take longer, especially when considering the Ichimoku cloud overhead acting as resistance (~$31,900), — the report said.
Fairlead Strategies also noted that the monthly MACD histogram was near zero, which indicates a neutral long-term drift.
“While the indicator hit a bottom a year ago, it has yet to move into positive territory. This suggests that a durable uptrend has not yet taken hold,” — the analysts explained.
According to the analysts, support sits at the 50-day moving average ($25,200), with the key resistance at $28,200.
Earlier, JPMorgan analysts concluded that the downside potential for Bitcoin is limited in the near term.
As noted, Pantera Capital analysts anticipated Bitcoin rising to $35,000 on the eve of halving and to $147,800 after this event in the longer term.
Prior to them, trader and analyst Michaël van de Poppe forecast Bitcoin rising to $50,000 ahead of the halving.