Bitcoin has lost its bullish momentum in the last few days, while the trend remains above the crucial trend line, which is acting as major support. With the fresh plunge from the interim highs, the price appears to be reaching the lower support yet again, which is very close to $27,000. Hence, the bulls are required to hold $27,200 levels; otherwise, a steep drop toward $25,000 is quite possible in the coming days.
In the meantime, Bitcoin transaction fees have skyrocketed, approaching $20 at the moment. Furthermore, BTC dominance is once again declining, being rejected by the same resistance at 48.69%. This indicates that altcoins may thrive in the coming days, and hence, a popular analyst believes the price may be prone to a continued descending trend and hence does not hold any active positions on BTC.
Analyst, Altcoin Sherpa highlights the series of bearish confirmations as the price dropped below EMA 25, 55, 89, and 200. Despite this, it is maintaining the right point of control with respect to the volume. However, he expects some bounce in the coming days but may continue to trade sideways.
“Bearish EMA crosses but still right near the point of control for volume profile. I expect price to bounce somewhere close to this level. Still extremely choppy though, I’m not in any active positions other than PEPE,”
So What’s Next? How will the BTC price trade in the next couple of days?
Bitcoin price continues to trade within an ascending broadening wedge which is still in play. As said before, the Bulls are required to defend the $27,300 support, which may spark a significant bounce in the coming days. The BTC price usually forms a Diamond Continous Pattern (DCP) which is the most commonly formed pattern.
The price action within this diamond shape consolidation is considered as the storing of energy or power or buying pressure which may be utilized to trigger the next bull run. Therefore, a bullish breakout from the DCP may lift the price beyond the bearish influence very soon.