Even after two weeks of deep consolidation, Bitcoin price shows no intentions of reclaiming higher ground. Thus, the sideways trend continues, and BTC price range remains restricted between $27,500 and $26,000 levels. This no-trading zone forces interested traders to wait for a clear breakout before positioning their funds in the market. A potential breakout from the range barrier will determine the near future trend for BTC.
An ascending trendline drives the long-term rally for crypto holders, and the intraday trading volume in Bitcoin sits at $14.1 billion, reflecting an 8% loss. The daily time frame chart reveals a long lower price rejection candle at the range support of $26,000. This reversal sign indicates that buyers continue to defend bottom support and may lead to a consolidation phase for a more extended period.
Nonetheless, the short-term trend in Bitcoin price remains bearish, making a downside potential more promising to predict. A daily candle closing below $26,000 may accelerate the selling pressure to drive a more significant correction. On the other hand, a potential downfall would face immediate support at $25,000, aligned with the 200-day EMA. In a pessimistic scenario, a breakdown below $25,000 could send the BTC price to the combined support of $24,000 and a rising support trendline.
A bearish breakdown below the range support of $26,000 signals the resumption of the prevailing correction phase. Ending the two weeks’ consolidation on the bear’s side would trigger a substantial downfall to $24,000. The key support level that could undermine this potential downfall is $25,000.
Supporting this observation is the Bollinger Band indicator, where the midline acts as a dynamic resistance against rising BTC prices. Additionally, the Vortex indicator demonstrates a bearish trend remaining intact with the VI- slope (orange) moving above the VI+ slope.
In conclusion, while some may argue that Bitcoin could reclaim its higher ground, the market overview points towards a prevailing bearish trend. Traders and investors alike should keep a close eye on critical support and resistance levels and exercise caution when entering the market. As always, conducting thorough market research before investing in cryptocurrencies is crucial to avoid personal financial loss.
Source: Coingape
