The market sentiment has fallen in recent memory for the first time, which indicates fear. In addition, the ETF’s witness to a large outflow of more than $ 1 billion, with BlackRock recording of more than $ 418 million or 4,200 BTC-the only biggest outflow. This dragged the Bitcoin price near $ 82,000, which attracted huge purchase interest. Currently, the Bulls have activated a strong rebound and raised the levels higher than $ 86,000. However, the question arises whether the current Flip can stay long whether a bullfall is in the making.
Since November 2022, the BTC prize has experienced one of the steepest three-day drops, so that more than $ 300 billion was wiped away from the market. Nevertheless, some proponents Bullish remain on Bitcoin, because they claim that the revival of the Bull Run can be activated as soon as the price enters the demand zone. From a broader perspective, however, token remains under the Bearish influence, and so the current rebound can be seen as a short-term lighting.
Weekly RSI gives concern
The RSI is considered one of the important indicators, which helps to determine the next effect of the rally. It is used to identify the purchase and points of sale and also a horizontal consolidation. In the longer perspective, the Beerarish indicator remained, while the price remained high. Earlier, when the RSI and the prize showed a reverse co-relationship, this led to the start of a Bear Market.
As can be seen in the graph above, the weekly RSI is lower highlights and lows in the times that the price was higher highlights and lows. A similar pattern occurred in 2021, causing the BTC price of highlights from the highlights of almost $ 69,000 to the bottom below $ 16,000. Although the bulls tried hard to validate a rebound, the bears had kept a strong hold on the rally that continued to push the price lower. Therefore, if the BTC price does not rise and levels above $ 100k can be obtained, a similar pattern could follow, so that the levels are dragged by 50%.
More bearish promotion arrive for BTC price
In times when the Bitcoin price experiences enormous sales pressure, every rebound is seen as the start of a recovery phase. However, the trading pattern in the past suggests that the price still has to enter the demand zone. The realized price and the profit/loss margin suggest that token is expected to see more bearish heat.
The above graph shared by a popular analyst, AliShows that opportunities have occurred since 2022 when the realized loss margin of the trader affects -12%. Interestingly, the levels -8.25%have been reached, which suggests that the rally comes close to the purchase zone of 2022. Although some believe that traders can find the options earlier, the correlation between realized price and p/l -marge is some concern about market psychology and investor behavior.
So what is the following?
Although some analysts believe that the current rebound could be the end of the bearish trend, the liquidation levels suggest a diverse price action. After the last price promotion, large livered clusters were mounted on both sides. This suggests that the Bitcoin price can see enormous volatility in the coming days. That is why more downfall can be expected at the end of the month, and if the price starts the new monthly trade on a bullish bill, it can remain increased until the end of the quarter.
Credit : coinpedia.org
