Trading has entered the second month of 2024 with excessive upward pressure. Since the interim rejection at $43,800, Bitcoin price has been showing red candles, indicating increasing bearish dominance in the markets. This suggests that the token may have already reached the interim highs and therefore long positions could come under pressure in the next few days.
So is it the end of the Bitcoin uptrend?
Spot premium rates are considered one of the best indicators to gauge the upcoming trend of the rally. This is nothing more than the difference between the current price and the average of the seven future prices. The current spot premium is completely flat, interest rates are consistently neutral.
Looking at the chart above, a well-known analyst named Daan Crypto Trades believes that the price could fluctuate for even longer than expected. After BTC price largely traded sideways throughout January, the question is, will it continue a similar trend in February? Otherwise, BTC price could see a major price movement in the second half of the month.
BTC price has been under extreme upward pressure over the past few days, which is why bulls have no room to thrive. Technical data has also shown bearish signals, which could support the assumption of a renewed downtrend.
Despite the Stochastic RSI flickering bearish signals, bullish hopes continue to prevail until BTC price stays above $40,000. The token is trading along the ascending trend line, which has been acting as strong support since the beginning of the fourth quarter of 2023. Even if the price initiates a slight decline, the support zone between $40,500 and $41,000 could sustain the rally and prevent any sustained bearish action.
Therefore, the price of Bitcoin (BTC) continues to show bullish possibilities while the bears are expected to continue making gains for some time.
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