Bitcoin price has witnessed an iconic rally over the past few days, narrowing the gap between current levels and crucial resistance. Unfortunately, the bulls failed to sustain the rally above gains, which gave the bears an opportunity to give up some gains. Although the prevailing downtrend appears to be short-lived, the upcoming move appears to confirm a new bearish move that could push BTC price to new lows.
Will BTC price maintain a downtrend in 2024?
Bitcoin is currently making lower highs and lower lows, indicating growing strength from bears. Additionally, the previous high above $44,800 has not been tested at least once, supporting the bearish claim. As bearish volume has reached a 2-day high and volume is at its highest since April, a correction appears imminent.
As can be seen in the chart, BTC price has fallen below the daily EMA-20 of $42,542 for the first time in recent months, leaving behind a multi-month high. With the increase in bear volume, a short-term bear potential could now be active. However, if the price moves during the monthly close and closes below EMA-20, the bearish trade could be confirmed.
Additionally, the RSI has fallen below 50, indicating that the market is no longer in an uptrend. Despite the bearish clouds hovering over the price of Bitcoin (BTC), the possibility of a bullish reversal is emerging in the long term. According to a well-known analyst, Michael van de Poppe, the BTC price is likely to be capped with the spot news of the ETF approval.
However, the analyst believes that the price could peak at $48,000-$52,000 and later decline a bit and reach a new high by the end of 2024.
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