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February 22, 2024
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Bitcoin Flashing Bearish Signals-Is the BTC Price Attempting to Trap the Bulls?

The post Bitcoin Flashing Bearish Signals-Is the BTC Price Attempting to Trap the Bulls? appeared first on Coinpedia Fintech News

With the growing trend of new tokens like PEPE or BRC-20 tokens, the Bitcoin price is experiencing stagnant price movement. The choppy price actions of the top popular tokens are expected to continue as the token is closer to validating a bearish pattern. Although the price just rebounded from lows below $26,000, it cannot be certified as the resurgence of a bullish trend, and hence the bulls are expected to be trapped for a while. 

The BTC price experienced a fresh price jump that successfully tested the 200-day MA levels. Besides, the Bitcoin MVRV-Z score had surged back to positive levels, which hinted at the end of the bearish market. Additionally, the price also underwent a failed breakdown, meaning the price sliced down the lower support of the descending triangle and quickly bounced back to re-enter the pattern. This also indicates the completion of a bearish retest, and hence the price may now be ready to undergo a bullish breakout. 

However, the bearish clouds do not appear to have waned to a large extent, as the BTC price is closer to breaking below the bull flag pattern. A popular analyst, Rekt Capital, believes that a rejection from these levels may drag the BTC price lower in the coming days. 

Although the price is trying to rebound, the BTC price is required to reach minimum levels of $27,600 support. The analyst believes that if the price is able to reclaim the levels around $27,600, then the trend may form a falling wedge pattern as the condition remains dynamic at the moment.

Overall, the trend continues to remain bearish as the BTC price failed to reclaim the $28,800 weekly range. Rather, the price closed below $27,600 as it failed to hold the interim support. Hence, if the Bitcoin price rises beyond the $27,600 resistance, then a significant upswing may be expected; otherwise, the trend may plunge hard to mark the lows close to $20,000. 

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