After months of being rejected by the mid-term downtrend line, Bitcoin has finally broken through this obstacle and is now crossing the 100-day moving average.
However, BTC was forming a bearish reversal pattern on the lower timeframes, although the momentum has yet to turn bullish. At the moment, there are no signs of trend reversal in price action.
Bitcoin has formed a bearish triangle pattern and recently found support at the low end near the $18,000 range until breaking out of the triangle.
A breakout from the top of the bearish triangle is usually seen as a bullish signal for the price. However, current market conditions are slightly different, with some significant levels of resistance in the short term.
The 100-day moving average of $20.8K is Bitcoin’s main barrier and the price is struggling to sustain above this level after several failures.
Optimism is likely to return to the market if prices successfully break out of this level. Nonetheless, it is more likely that Bitcoin will reject at this level and plummet based on lower timeframe price action.
4 hour chart
There is a clear imbalance between the $20.9K and $22.1K levels. Prices have recently skyrocketed and reached this area.
Markets typically use imbalances to initiate the next expansion move.However, the price is formed bearish reversal flag pattern and reached the upper limit.
On the other hand, if we take a closer look at the latest price movements, double top reversal pattern formation. moreover, bearish divergence Between the price and the RSI indicator on 4 timeframes.
Putting all the above signs together, there are many bearish signs for BTC in the coming days. It’s a likely scenario.
Bitcoin Realization Upper Limit – UTXO Age Group (%)
It’s been almost a year since Bitcoin hit ATH at the $69,000 levels and at the beginning of the current bearish cycle. As mentioned earlier, price action has yet to transition into a bullish reversal structure.
In the meantime, the pandemic, inflation, and other strains have brought us various periods of instability. As a result, uncertainty and doubt continue to be the dominant sentiment in financial markets.
The chart below shows a macro view of Bitcoin supply dynamics based on the Realization Cap – UTXO Age Band (%) metric. It represents a group of coins based on their share of the overall lifespan and realization cap.
The market is in the accumulation stage and the number of coins moving over the past six months has steadily increased. This accumulation and his HODLing behavior is expected in a bear phase and shows that many investors still believe in Bitcoin.
This metric shows that during this particular bear market, despite the recent significant price drop below $20,000, the accumulation momentum is higher than in previous bears.
This suggests that Bitcoin is still seen as a valuable long-term asset for many market participants, and that the market will make a significant bullish move after finding a long-term bottom. .
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cryptocurrency chart By TradingView.