SNEAK PEEK:
- In the last seven days, the Bitcoin (BTC) market by a bearish trend.
- Indicators suggest that the bear reign is gaining traction.
- A break below the $21,539.39 support level may result in a further drop in BTC price.
Bitcoin’s (BTC) price has reversed sharply over the past week, swinging between $21,539.39 and $23,556.95. However, after the bulls encountered selling pressure at the day’s high of $21,929.00, the bears were able to gain the upper hand and effectively end the bullish session. As of press time, the bears had pushed the price down to $21,685.03 (a 0.92% drop).
Market cap decreased by 0.90% to $418,343,677,637, and 24-hour trading volume slipped by 20.91% to $24,259,029,699 as investors sold off their holdings out of fear of a continued price decline. Over the past few days, the BTC market has shown a lot of volatility as bulls and bears have tried to gain control. However, despite the persistent selling pressure, Bitcoin (BTC) held above $21,000 during today’s trading.
The Kelter Channel bands on the BTC chart, with the upper band at 22708.46 and the lower band at 21639.82, move south throughout the day, indicating a downward trend. This declining trend forecasts that selling pressure is more significant than buying pressure in the market and suggests a lower closing price by the end of the day if bulls fail to turn the tide. Bulls must enter the market and buy enough Bitcoin (BTC) aggressively to reverse the downward price trend. Since selling pressure drives prices lower, bulls need to push prices back up toward the upper band of the channel to cancel out the direction and avoid a bearish close for the day.
Further supporting the bearish price action is the Chaikin Money Flow (CMF) indicator dropping into the negative region with a reading of -0.20, indicating a sharp rise in selling pressure. For bulls to counteract this selling pressure and neutralize the bearish trend, they must be willing to buy enough BTC to outnumber the current sellers. In addition, due to the bearish indications provided by the RSI, bulls will need to exert sufficient buying pressure if they want to keep the price trending upward toward the upper band.
The Fisher Transform is trending above its signal line at -3.05, indicating that bears are in market control. However, a much slower advance rate above the signal line suggests that bearish momentum may be waning, and a bullish reversal in the market may be on the horizon. Therefore, bulls must increase their buying pressure to counteract the current selling pressure and take advantage of this potential bullish reversal.
The Keltner Channel bands move south as well on the 24-hour price chart, indicating that the BTC price may continue to fall in the coming sessions, with the upper band at 23740.95 and the lower band at 20953.10. This move implies that the asset’s downtrend is likely to continue in the short term; however, because a green candlestick develops after a steep bearish movement, the price may attempt to recover in the coming days. In a price correction, strong resistance may be around the upper Keltner band at 23740.95.
However, because the Chaikin Money Flow (-0.12) is trending south, a bullish reversal is unlikely, indicating market sentiment is still bearish in the short term. As a result, the possibility of BTC recovering is slim, and it may continue to fall toward the lower Keltner band at 20953.10 or even lower.
The Fisher Transform remains in the negative region with a reading of -2.14 and moves below its signal line, reinforcing the market’s bearish sentiment. This reading confirms that a bullish reversal is unlikely in the short term, as market sentiment remains bearish.
Bulls must apply pressure to reverse the trend reflected by the indicators and seize market control.
Disclaimer: In good faith, we disclose our thoughts and opinions in our price analysis, as well as all the facts we give. Each reader is responsible for his or her own investigation. Reader discretion is advised before taking any action.
