The cryptocurrency titan, Bitcoin is experiencing what some describe as ‘endless spot selling,’ with prices dipping below $28.7K. The start of the recent United States trading showed no soothing signs for bulls after a weekend of stagnant behavior. Some traders predict a downward spiral once the stalemate breaks. The derivatives trading at a premium over spot places bulls in a disadvantageous position which compounds the problem. The existence of a perpetual pair premium versus spot is a foreboding sign, adding to the worrisome pile of endless spot selling and choppy price action.
Looking at the bigger picture, an interesting showdown seems to be brewing for BTC/USD. The creation of a double top formation had been observed in weekly candles, as noted by popular trader and analyst Rekt Capital, with validation expected within the next month. This classical M-shaped pattern would require Bitcoin revisiting the area around $26,000, which implies breaking multiple crucial moving averages including the 21-week, 50-week exponential moving averages, and 200-week simple moving average.
What might prevent this scenario is the cluster of support between $26,000 and the current spot price. This support cluster, Rekt Capital suggested, could obstruct the double top formation. Instead, it might allow Bitcoin to print a weekly higher low and carry on upward. Crypto skeptics, however, are not convinced and warn of the potential future where BTC price meets a bearish 2023 double top.
Still, diehard crypto enthusiasts have speculated that with a drop into the August 10 U.S. Consumer Price Index print already being placed, this may result in a classic BTC price action. At the same time, the monitoring resource CoinGlass reported total BTC long liquidations at over $10.5 million on the day, with cross-crypto long liquidations standing at $60 million.
This pessimistic viewpoint, however, does not trivialize the inherent risks and fluctuations that are part and parcel of the cryptocurrency sphere. Every investment and trading move comes with its own set of risks, and it’s advised that individuals conduct their own research when making a decision. The lingering uncertainty is something both parties agree on, and only time will prove which outlook prevails – whether Bitcoin will emerge victorious or meet a 2023 double top.
Source: Cointelegraph
