Market participants have become highly skeptical of the Bitcoin price as the trend is reversed very frequently. The price, which was trending within a higher high & higher low, flipped to a lower high & lower low in no time. After fluctuating within a bearish trend for quite a long time, the BTC price was expected to coil up soon. However, the asset is now expected to drop hard as the technicals are not in favor of a bullish set-up.
The market drop, due to the fresh inflation rates, has now widened the gap between the current price and the crucial resistance levels as the 50-day MA levels are out of reach. Other macroeconomic factors & deep bearish sentiments have compelled the price to reach the neckline of the H&S pattern.
Therefore, a huge drop of nearly 10%-12% is haunting the BTC price rally in the short term, which could continue until the end of the month.
As the above chart indicates, the price is testing the neckline of the bearish Head & Shoulder pattern. The bearish pressure is weighing heavily on the asset; no attempts at a rebound have been successful. Hence, a drop may further drag the price close to the yearly lows at around $17,500. If the price fails to rebound, it may even reach the lowest levels close to $15,000 initially, and may also slide below $12,000 too.
According to certain reports, the BTC price is expected to test all the lower support and break them in the coming days. Therefore, the traders now appear to be pessimistic as huge buy orders are been placed around $8000 on Coinbase.
As predicted by many market analysts and influencers, the minor spikes are just another bull trap as the Bitcoin(BTC) price continues to trade within a descending trend.
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