The Other Side Of The Bitcoin: Analyst Highlights What Happens If Bulls Fail
November 29 2023 - 4:00PM
NEWSBTC
Bitcoin has currently entered a stage where the bulls and the bears
are vying for absolute control over the price, meaning that it
could swing either way. While sentiment is still mostly bullish
from here, there is still the possibility that the bears could win
out and this side of the coin has prompted crypto analyst
FieryTrading to map out what could happen if this ends up being the
case. Identifying The Bearish Side Of Bitcoin In the analysis,
FieryTrading identified an indicator that might point toward a
bearish reversal for Bitcoin and this was the Wyckoff distribution
pattern. The analyst observes that the Bitcoin price might actually
be current trading within this Wyckoff distribution pattern which
would not be positive for the price. Related Reading: Analyst Uses
5200% Impulse Against Bitcoin To Predict XRP Price Surge To $9.6
“As seen on the chart, the BC/UT/UTAD are nearly identical as on
the schematic. Three higher-highs, of which the first two are sold
off quickly, and the last (UTAD) took a while before it turned
bearish,” Fiery Trading explains. Furthermore, the analyst explains
that the AR and SOW phases identified in the chart above are almost
identical. However, there is a significant difference, which is
that the Bitcoin price has already retested the AR-low between the
UT and UTAD identified twice already. Source: TradingView.com In a
scenario where this bearish setup plays out, the crypto analyst
explains that there will end up being another retest around the SOW
region in the future. If this happens and support fails to hold,
allowing the price to fall through this SOW area, then I would be
very bearish for the price. The target in such a scenario would be
$30,000, effectively marking the $38,400 level as the local top.
“This would also mean that 38.4k is the 2023 top, with a move
towards 30.000$ being fairly likely,” FieryTrading posits. The
analyst reiterates their own bullishness toward the price of
Bitcoin. However, they also express that it is important to see
bearish signs when they appear. “The fact that we had three higher
highs which were all sold off is alarming at the very least.” BTC
Begins To Slowdown The Bitcoin price has already seen a slowdown
after an impressive run-up above $38,000, which explains why some
indicators have begun to turn bearish. One example of this is the
decline in the trading volume which suggests that investors are not
as active in the coin now as they used to. Related Reading: Crypto
Analyst Predicts 4400% XRP Price Surge To $27, Here’s When The
decline in trading volume has coincided with a drop in the market
sentiment. However, the negative sentiment is still drowned out
predominantly by the positive as the Crypto Fear & Greed Index
still points to greed. This suggests that despite the decline in
price and trading volume, investors are not selling off much of
their holdings. Bulls hold $38,000 | Source: BTCUSD on
Tradingview.com Featured image from GOBankingRates, chart from
Tradingview.com
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