The uncertainty within the crypto space has yet again increased after a relief of a few weeks, as the Bitcoin price crashed hard below crucial levels. The increased bearish action is currently signaling that the rally could re-test the interim support at $22,500. Meanwhile, the bulls appear to hold enough strength and momentum required to withstand the bearish pressure.
However, it would be incorrect to say that the bulls could continue like this for much longer- they are expected to get exhausted soon and that may spark a fresh decline in the prices very soon.
The BTC price has surged from $16,500 to as high as $23,900 since the beginning of 2023. The 40% price rise appears to end soon as the 3 main bearish factors have emerged. Here’s what they are:
- Bitcoin completely overshadowed the price rise that marked the yearly highs on 20th January 2023 and dropped to the levels below during the next trading day. This is a clear indication of a bearish reversal, popularly known as bearish engulfing which begins at the end of the rally.
- The Relative Strength Index (RSI) has displayed an inclination towards the south and slipped below the January 14 levels. However, in the meantime, the BTC price continued to rise and this gap usually results in trend reversals, favoring bears.
- Lastly, the MRI or the Moment Reversal Indicator which is a time-based indicator that speculates the end of the trend based on the momentum of the price movement has breached the BTC price in the daily chart. However, it still continues to hover within a crucial area wherein a bullish flip may be expected. But in case, the levels drop towards the south, a notable bearish case may be validated.
Presently, the Bitcoin bulls are trying hard to hold the price levels above the crucial support and a failure may spark a fresh bearish trend. The price may continue to dive lower until the sell-off subsidizes offering an opportunity for the buyers to accumulate. Besides, the FOMC meeting which is scheduled to take place in the following days is believed to induce bullish momentum to rise the price beyond $24,000.
Therefore, the next 24 to 48 hours appear to be extremely crucial for Bitcoin and the entire crypto space.
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