$BTC Faces 8% Downswing Amidst Distribution Phase

$BTC Faces 8% Downswing Amidst Distribution Phase

Bitcoin Price Prediction: the formation of a channel pattern may trigger a bearish correction in BTC price

Published 10 mins ago

Bitcoin Price Prediction: Over the last two weeks, the BTC price has witnessed high volatility as the overhead supply pressure around the $36,000 mark is undermining buyers’ attempt to regain higher ground. However, a look at the 4-hour time frame shows this consolidation resonates between two parallel walking trend lines of a rising channel pattern. The coin Price currently at the lower trend line of this pattern threatens a potential breakdown which may trigger a bearish correction.

Also Read: Bitcoin (BTC) Price Consolidates as Analyst Predicts Next Stop

Will BTC Price Plunge to $30000?

  • A channel pattern carrying the current distribution phase is in BTC
  • A bearish breakdown from the support trendline would set a pullback to the $32000 mark
  • The intraday trading volume in Bitcoin is $13.1 Billion, indicating a 3.1% loss.

TradingView ChartSource-Tradingview

Under the influence of a rising channel pattern, the Bitcoin price is riding a shallow recovery below the $36,000 barrier. The daily candles projecting short bodies and long legs reflect the uncertainty among market participants which are vulnerable to a bearish correction.

Moreover, this consolidation at the resistance trendline of a long-coming rising wedge pattern reflects a distribution phase that accentuates the potential of a significant downfall. With an intraday loss of 1%, the BTC price has reached the $34.692 mark and retests the lower trendline of the channel pattern

A potential breakdown below this pattern would give a better confirmation of potential corrections. The post-breakdown call would likely plunge the coin price to $33,270, followed by $32,000, registering a potential loss of 8%. 

Should this anticipated correction trend pick up momentum, the BTC price may fall back to $30,000 to revisit the lower trendline of the wedge pattern.

Will the Recovery Trend Continue?

While the near-term projection for the BTC price trend is sideways to bearish, it is crucial to note that the prevailing uptrend is still intact. If the market participants use this sideways trend as an opportunity to recuperate bullish momentum the buyers may breach the overhead resistance and undermine the aforementioned bearish thesis. This potential breakout may intensify the recovery trend and may push the prices to a high of $48,000.

  • Bollinger band: A down-pick in the lower boundary of the Bollinger band indicator reflects the bearish momentum, indicating the sellers are picking momentum.
  • Moving and Average Convergence Divergence: A bearish crossover within the MACD and signal line of the daily chart reflects the asset is likely to enter a correction trend.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.


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