“This will just be a lower high,” claims one analyst; Will Bitcoin (BTC) fall back to $27,000?

After almost a week of near stagnation, the bitcoin price has shown tremendous volatility in the past few days, reaching $30,000. With the possibility of a bullish reversal looming, the bears jumped back into action and capped the price below $29,400. Looking at the trend from a short-term perspective, it appears to be a minor pullback, but from a larger perspective, it could be nothing less than a lower high, indicating growing strength in the bears.

Lower highs are usually formed to catch the bulls at the intermediate highs where price spikes slightly to lure them in. This is followed by a steep downtrend in the longer term, which suggests that there is a high chance of testing the lower support in the near term. If the bulls fail to trigger a reversal at the support, the price might tend to drop towards the nearest support.

With BTC price now showing signs of a bearish decline, one of the popular analysts, altcoin Sherpa, believes that the price could revisit the $27,000 level.

The analyst has listed a few reasons why he thinks the bearish pullback could be possible:

• The price has been holding a support level for several weeks, each time hitting this consolidation

• Furthermore, the price diverges below these support levels, which triggers a quick recovery and climbs near the 200-day EMA

• Later, the price triggers a healthy bounce after reclaiming the crucial support levels, which have now turned into resistance levels

Therefore, to trigger the next upwave, it is important for the price to test the lower support, which falls around $27,000. Therefore, the current trading rate mirrors the two previous price moves, suggesting that a bearish pullback may be imminent before triggering the next bullish wave.

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