The stock market has reached a record high. bitcoin price has since retraced The market has returned to its previous pre-pumping levels, erasing all of its gains. The bears are regaining control of the market, and sellers dominate the marketplace. Crypto analyst Melikatrader, who is predicting a sharp rise in the price of bitcoin, has presented two scenarios that could occur. Both end with a bearish return to local highs.
Lower Trendline Break Points To Bearish Developments
This analysis is a good starting point. highlights Bitcoin Price: Two possible Directions fall from its new all-time highs. In both scenarios, the bullish upward push is followed by a downward bearish trend. Each scenario has a possible peak that can be reached before the resistance is met.
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Both cases are triggered by the price of Bitcoin breaking out from the range. lower trendline of the channel. This is after the initial break of the ascending trendline that the pair had traded within, resulting in higher highs as well as higher lows. The break below trendline indicates that the bearish side is now in control.
There are two possible outcomes for the price now that sellers have taken control. It could go in two directions. The first is to continue its upward trend and get rejected once it reaches the $118,000 threshold. The supply zone is where sellers would dump huge amounts of BTC onto the market, and the price could be beaten back.
The price continues to rise even after the first scenario. hitting the first supply zone. It now sits at just under $120,000. The end result is the same, however, as the scenario in the first case, which was that sellers will dump their Bitcoins and the price will plummet again.
How low can the Bitcoin price go?
Analyst highlights that both the scenarios’ peaks align with retracement levels where sellers could be waiting to dump. They both crash to a similar level. Both scenarios have a $115.800 downside target.
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The demand for and the support of this area was high during the previous retracement/correction. It is therefore likely that the buyers will return at this price, making this a potential bottom, and the start of the next rally.
Featured Image from Dall.E. Chart by TradingView.com
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Source: www.newsbtc.com
