News
Are we heading towards $48,500?
Bitcoin price has been struggling lately as market sentiment isn’t great. Let’s dig into what’s going on with BTC and why things look a little bleak.
A difficult situation for Bitcoin
If you’ve looked at the 1-hour chart of Bitcoin, you’ve probably noticed that BTC is stuck at $56,700. It’s trapped between the 20-day and 50-day moving averages, kind of like being stuck in a traffic jam.
Source: TradingView
The price started to fall from $64,000 and found support at $53,800. But every time it tries to move up, it gets pushed back down from the 50-day moving average at $57,000. Even with support at $56,000, it doesn’t give us much hope.
Rising wedge raises alarm
Right now, the chart is showing a rising wedge pattern. This is usually not good news. It is as if BTC is trying to climb a slippery hill, and for the past four hours, all hourly candles have been dojis, which are small moves that show the market is uncertain. This means that even a small piece of bad news could push BTC lower, leading to further price declines.
Source: TradingView
More bad news
If we look at the weekly chart, we see another bad sign: the double top or “M” pattern. This often signals a major reversal after an uptrend, adding fuel to the negative sentiment.
Source: TradingView
Never-ending bearish signals
The MACD indicator is also showing negative signals. This is another sign that the bears are in control. The MACD line tried to cross the signal line, but failed.
Source: TradingView
On the other hand, the Fear & Greed Index also dropped by 3 points to 26, showing that fear is increasing in the market compared to yesterday.
Source: Fear and Greed Index
BTC could be headed towards the bears
If the bears continue to push, the price of Bitcoin could drop to $48,500. Current patterns and indicators all point to a difficult period for BTC.
Bitcoin price is currently struggling. A combination of negative patterns is visible on the chart. Patterns such as the rising wedge and double top, along with negative indicators such as the MACD and a declining Fear & Greed Index, suggest that sellers are dominating the market. Traders and investors should be cautious, as the market may experience further declines if the negative feeling persists. However, it can also be an opportunity for some people.