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Will Bitcoin Crash Again? Bearish Pattern Spotted
The world’s largest cryptocurrency by market capitalization, Bitcoin (BTC), is currently consolidating within a tight range before potentially experiencing a significant price crash. This prediction is based on the emergence of a bearish head and shoulders pattern on the four-hour time frame.
In recent days, the market has not reacted positively to any uplifting news. For instance, after Treasury Secretary Scott Bessent’s bold statement, BTC started rebounding along with other major assets. However, this upside momentum eventually dissipated, resulting in all gains being lost. At present, BTC is trading near the $82,500 level and has experienced a price decline of over 1.10% within the last 24 hours. Concurrently, its trading volume plummeted by 50%, indicating reduced participation from traders and investors due to notable market volatility.
If this trend continues, with the recent price drop, BTC is expected to breach the neckline at the $81,500 level, which could lead to a decline of approximately 4% to reach the $78,200 level in the near future. Currently, the asset is trading below both its daily and four-hour 200 Exponential Moving Average (EMA), indicating a strong downtrend and weak momentum. As traders typically wait for prices to jump before short-selling the asset, it explains the recent price surge followed by a swift drop within less than 24 hours.
Despite this bearish outlook, investors and long-term holders are reportedly accumulating the asset, according to data from on-chain analytics firm Coinglass. It has been observed that exchanges have witnessed an outflow of approximately $175 million worth of BTC over the past 24 hours. While this accumulation typically occurs during a bull run, it can create buying pressure and eventually trigger an upside rally.
Tags: Bitcoin Price Analysis
Source: https://coinpedia.org/price-analysis/will-bitcoin-crash-again-bearish-pattern-spotted/
