After swinging with huge uncertainty, Bitcoin prices are showcasing some stability in the prices since the past couple of hours. A significant buying volume appears to have accumulated and hence the prices have flipped from the lower support. An extended upswing may uplift the price beyond the $29,700 levels, but the bears seem to be still dominant and poised about the upcoming move.
Bitcoin’s extended consolidation has been witnessed a couple of times before. And each time the asset has managed to undergo a huge bullish trend. Despite the bearish predictions hovering around the asset, the probability of the bull run does not vanish. As pointed out by a popular analyst, BTC price undertakes a fakeout, then a fake-breakdown prior to a huge upswing.
On the other hand, the short-term analysis is extremely bearish as the prices are swinging within a descending parallel channel. The price is currently forming multiple lower highs and lows and being constantly rejected from the resistance levels. And hence it appears that before a significant upswing mentioned above, a hit to the lower levels around $26,600 may be imminent.
As seen in the above chart, the BTC prices are currently testing the middle bands of the channel where-in an equal buying and selling pressure is seen. However, the sellers appear to have dominated the rally and hence, a notable price drop may be expected. However, RSI & MACD both are bearish Therefore, the path towards the lower support just around $26.6k is extremely likely.
Was this writing helpful?