Bitcoin (BTC) Price Analysis: Regardless of the Interim Price Action, the BTC Price Remains Stuck Within a Steep Bearish Trend
- 王林Original
- 2024-08-16 21:33:12987browse
While the bearish targets remain activated, it may also be seen as a golden buying opportunity ahead of a fresh rise
Bitcoin (BTC) price analysis: A steep bearish trend or a golden buying opportunity?
The BTC price has been stuck up within a bearish trend as the token has been forming constant lower highs and lows. This has emphasized the growth of bearish strength, surfacing the possibility of another pullback. Regardless of this, the price still holds the possibility of a breakout above the range but the bulls do not appear to have held a strong grip over the rally.
Bitcoin price pulls back from $60,000 zone
The BTC price has faced a fresh pullback since the previous trading day and dropped back below $60,000. The fresh selling pressure has mounted above the Bitcoin price rally, due to which the possibility of a revival has differed. However, the Bitcoin cycle appears to have transferred from bullish to bearish, certifying a huge probability of hitting the liquidity zone in the coming days.
A popular analyst, ALI, recently shared data from Glassnode that suggests a steep transition from bullish to bearish, which often happens when MVRV drops below the 1-year SMA. As per the analyst, the shift occurred as soon as the BTC price dropped below $61,500. This also signals that a significant number of tokens were bought above these levels. Unfortunately, these tokens are now at a loss, which signals the rally could potentially lead to a heavy distribution.
What’s awaited for the Bitcoin (BTC) price rally?
The daily chart of Bitcoin suggests the price is stuck within a descending parallel channel. Moreover, the price is now failing to secure levels above the average bands of the channel, which has been fluttering bearish flags over the rally. The bulls are trying hard to trigger a rebound from the support but the trade setup suggests the price is about to hit the lower support below $54,000 in the coming days.
The DMI does not suggest any positive outlook, while the RSI maintains a descending trend and is heading towards lower support. Therefore, bearish clouds continue to hover over the Bitcoin (BTC) price rally as it may experience a strong pullback by the end of the week.
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