Bitcoin Bulls Drain off Strength, Price Drops to $51,500
After a notable rise in the past few days, the Bitcoin bulls appear to have drained off their strength. As a result, the price has dropped to close to $51,500, with a larger possibility of maintaining a descending consolidation.
Price Preparing to Drop 15% in Next Few Days
The technical analysis suggests that the Bitcoin price is preparing to drop by nearly 15% in the next few days, which may keep the markets consolidated for a while. Investors are left wondering whether the BTC bull run is in dire straits or if it is a healthy pullback to attract more liquidity.
Bullish Momentum Fades, Price Drops Below Key Resistance
The Bitcoin price was surging hard, displaying a huge possibility of achieving $55,000 before the end of the week. However, after reaching the strongest-ever resistance at $54,500, the bulls drained out their strength, causing a notable drop in the price levels.
Unfortunately, the BTC price will experience a prolonged bearish heat as the levels have dropped below a decisive phase, flashing out bearish signals. The BTC price has dropped below the decisive symmetrical triangle in the short term after holding along with the lower support for some time. This is a concerning development, as previous similar actions were a result of prolonged bearish pressure. In contrast, the current situation shows that the bulls failed to defend the support.
Key Support Levels in Focus
The hourly RSI (Relative Strength Index) is plunging, indicating a possible downward movement towards the lower support level. This support level is expected to act as a strong base, potentially triggering a healthy rebound.
Bitcoin Price Expected to Remain Consolidated
Given the current market sentiment, which falls within the range of 'greed', it is believed that the Bitcoin price will remain under bearish influence during the weekend. However, it is unlikely to trigger a significant pullback below $50,000. Instead, the star cryptocurrency could remain largely consolidated and re-test the $51,000 levels before initiating a fresh price action.
Minor Accumulation May Result in Giant Breakout
Although the current consolidation may be seen as a minor accumulation, market sentiments are extremely bullish. This suggests that a giant breakout may be on the horizon, attracting investors to enter the market with renewed enthusiasm.
Overall, while the Bitcoin bulls may have lost some strength, the price drop could be seen as a temporary setback rather than the end of the bull run. Investors will be closely watching for any signs of a breakout or further downtrend in the coming days.
Analyst comment
The news is negative as it highlights a drop in Bitcoin price and predicts a further decline. As an analyst, I expect the market to maintain a descending consolidation with a potential 15% drop in the next few days. However, there is a possibility of a healthy rebound from the lower support, resulting in a fresh price action and a potential giant breakout in the future.
