Bitcoin Bullish Structure Holds Firm: $31,000 Breakthrough Imminent?

In the world of cryptocurrency, the market can be a confusing and volatile place. This is especially true for Bitcoin (BTC), which has seen its fair share of ups and downs in recent days. Jackis, a well-known analyst in the crypto community, has recently commented on the current state of the market, and his words may be of interest to investors.

According to Jackis, Bitcoin’s weekly structure remains bullish, which means that despite any potential dips, the overall trend is upward. He suggests that even if there is a deeper pullback, it can be seen as a potential higher low in a bullish trend, which should eventually lead to a break of the $31,000 level. However, Jackis also warns that this bullish trend must be proven, and until then, investors should be cautious.

H4:

Surely a decent buyback from the HTF range lows but as of now remains in a bearish structure

Until proven otherwise or until we see a LTF convincing structure to long, we expect a new LL pic.twitter.com/9VUY79bnPT

— JACKIS (@i_am_jackis) May 16, 2023

On the daily chart, Jackis notes that the market has just swept the range low of $26,500, which could be seen as a potential deviation. However, despite this, the overall structure on the daily chart remains bearish, and investors should treat it as such until further highs are reclaimed. He suggests that while there may be a decent buyback from the higher time frame (HTF) range lows, the market is still in a bearish structure. Until there is evidence to the contrary or a convincing low time frame (LTF) structure too long, Jackis expects a new lower low to be seen.

Furthermore, according to Jackis, the current structure of the Bitcoin market is bullish, but this could change quickly. He notes that the market is currently trading at a premium, which is known as the Golden Zone, compared to the H4 Swing. To continue pushing higher, the market needs to show real strength at this level. However, the current market conditions are challenging to read, and there are arguments for both bullish and bearish positions.

A recent report by Kaiko, a leading provider of market data and insights, has shed light on an interesting trend in the Bitcoin and Ethereum (ETH) markets. According to the report, the correlation between Bitcoin and Ethereum has hit its lowest level since November 2021. The rolling correlation between the two cryptocurrencies has weakened from 96% to 77% since mid-March, indicating that they are increasingly being driven by divergent idiosyncratic factors.

The report highlights that Ethereum has lost momentum since the Shapella upgrade, dropping by nearly 14%, while Bitcoin is down by around 11% over the same period. This divergence suggests that the two cryptocurrencies are being influenced by different factors, rather than moving in tandem as they have in the past.

As of this writing, the largest cryptocurrency on the market, Bitcoin, is trading at $27,000, which is slightly below its 50-day Moving Average (MA). While BTC has managed to reclaim the $27,000 level, it has seen a minor decline of 1.4% over the last 24 hours.

Featured image from iStock, chart from TradingView.com