Bitcoin (BTC) price could enter a major bearish trend if this scenario occurs – Coinpedia – Fintech & Cryptocurreny News Media
Bitcoin (BTC) price surged last week as inflation and growth concerns were allayed by a weaker-than-expected US Consumer Price Index (CPI).
BTC price surged 4.92% to close the week at nearly $24,100. BTC even surpassed $24,500 and attempted to reach $25,000. It is currently consolidating and expecting further gains above the $25,000 level.
Bitcoin may be aiming for another retest of a crucial price level that will prevent the digital gold from entering another bear cycle, which seems like the next logical target given the coin’s failure to surge $25,000 according to the cryptocurrency’s daily chart break through
After falling below $20,000 in June, Bitcoin has been trading in a rising wedge for more than a month. Since then, the value of the initial cryptocurrency has increased by over 25%, with occasional jumps to 30% price increases.
On the downside…
Unfortunately, one pattern – the decreasing volume profile – kept the market cautious overall, signaling that traders and investors are not supporting the current direction.
Eventually, if the market faces heavy selling pressure again, it may end up with downside volatility.
A drop below the lower boundary of the wedge around $23,400 would mark the exact start of the reversal. Fortunately, the threshold coincides with the crucial 50-day moving average support level, which is often used as a guide for asset performance.
There is nothing left for now but to wait and see how this week’s events unfold. Aside from the above disadvantages, Bitcoin is currently not seeing a surge in institutional inflows that typically fuel the rise of the first cryptocurrency.
On the plus side, despite the recent drop of almost $17,000 that brought panic and despair back to the market, the short-term upswing in the cryptocurrency market has shown that investor sentiment is still favourable.
At the time of writing, BTC is trading at $24,096 and is down more than a percent.
Was this letter helpful?
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
Comments are closed.