The latest market data shows that the trading price of Bitcoin has entered the consolidation stage after experiencing a rally for a short period.
From Bullish to Consolidation
The trading price of Bitcoin had been moving in the upward direction, experiencing a significant move. The investors were supporting the trend, adding more power to the asset.
They kept on investing money to move Bitcoin’s price higher. However, the rally did not last for long and the asset ended up entering the consolidation phase. This means that the asset has lost its momentum.
The investors have started to lose their buying power, but it does not mean that they no longer have bullish sentiments. They may be taking a breather but it is not known how long it is going to last.
Until then, it is the bears that have control over the trend. They may use the opportunity to their benefit and pull Bitcoin’s price lower in the upcoming days.
Prior to the consolidation, Bitcoin had tried to make it past the crucial resistance level. However, the bears did not let that happen and they kept rejecting the bulls from a particular level.
They kept striking the bulls with stronger selling pressure, which eventually rejected them from the particular level. In the end, the price of Bitcoin did get pulled downwards, giving indications of a bearish trend.
Technical Analysis for Bitcoin
Bitcoin currently has a strong resistance level of $25,000 and it proving to be a huge challenge for buyers.
No matter how hard they tried, they were not able to push Bitcoin’s price over the strong resistance level. Although the investors did manage to push BTC over $25k for a short period, they could not sustain it.
They could not build up enough buying power to push the asset’s price higher. The resistance level has now become a pain for the bulls to overcome.
They exerted more buying pressure but they could not push it beyond that level. Even the last time the bulls tried to push the asset’s price higher, they faced a major downtrend.
A Reversal Pattern
The analysis further shows that Bitcoin has witnessed a bearish reversal pattern. It is the same trend that was witnessed for Bitcoin back in August 2022.
Even back in August, whenever the bulls tried pushing Bitcoin over the $25k price, it would end up facing a slump.
The current situation is almost the same as then so the price of BTC may continue declining in the upcoming days.
The data shows that the trading price of Bitcoin has slid from the 50-day moving average and it may continue experiencing a bearish trend.
If the selling pressure keeps on increasing, then the trading price of Bitcoin may continue getting pulled lower. In such a case, the trading price of BTC may fall to lower levels.
Initially, Bitcoin may lose the $21k mark, and then it will continue declining to $20k. This would be a strong support level for the bulls where they have to increase their buying power to compete with the bears.
If they fail to do it, then the price of Bitcoin may get pulled. The Bitcoin price may continue falling and it may dive to a low of $18k, the strong support level.
With Bitcoin losing its momentum, the trading volume has also started to vanish, which means that the asset is becoming silent.
The investors may not have a clear path in sight to move the trend. However, the asset may fall to a lower level if things do not work out.
According to the analysts, the asset’s trading price may continue weakening and it may find support within a particular range. The particular range may be between $21,500 and $18,000.
Given the current market condition, a miracle has to kick in to push BTC’s price higher.
