Bitcoin (BTC) shows signs of falling below a critical range, indicating bears’ dominance. For the past five months, price action has been in a consolidation phase, with expectations of surpassing the $70,000 level unmet. Technical indicators suggest more action before reaching the $70,000 level.
Bulls Fail to Show Strength in Bitcoin
Since the beginning of 2023, Bitcoin has seen a parabolic recovery, but in the first half of 2024, it started trading within a descending parallel channel formation. This formation caused a ripple effect, increasing the bears’ influence on the cryptocurrency market. Although bulls occasionally supported the price, the selling volume surpassed their support, increasing the downward pressure on Bitcoin.
Bitcoin’s recent pullback from the $70,000 level caused the price to drop to $64,000. Large investors (whales) played a significant role in this decline, and the price fell below the 200-day Moving Average (MA) on the daily timeframe. The price falling below the critical MA level had a negative impact on the markets and hindered Bitcoin’s price recovery.
Control May Shift to Bears
Currently, Bitcoin’s future price action is highly uncertain. The uncertainty is expected to give way to a decline, with an important bearish signal, the Death Cross, anticipated to occur soon. This signal is expected to form with the downward crossover of the 50-day and 200-day MAs, indicating that bears have taken full control and a new downtrend is likely to begin.
Bitcoin’s inability to rise above the average range of the descending parallel channel during the recovery process has raised questions about the next price movement.
Trading volume fluctuates constantly between bulls and bears, leading to uncertain price movements. This weekend’s price action could be crucial in determining the next step for the largest cryptocurrency.
