Bitcoin’s price has experienced a lack of momentum following its drop from the $75K level. Despite this, there is potential for a new bullish wave to begin. The daily chart indicates that BTC has been trading within a descending channel pattern, creating lower highs and lows. While some view this as a bearish reversal, the momentum does not appear to be strongly bearish. The $60K support level has proven to be strong, with the market aiming towards the channel’s upper boundary. A breakout above the pattern could signify the start of a new bullish trend, while a drop below could lead to a rapid decline towards the $52K support level.
Short-Term Price Movement
Looking at the 4-hour chart, we can see that Bitcoin has recently bounced off the $60K support zone and is now testing a short-term resistance level around $63,500. The Relative Strength Index (RSI) has also climbed above the 50% mark, indicating a return to bullish momentum. If the price manages to surpass the $63,500 level, it could rally towards and potentially exceed the midline of the channel. This scenario may set the stage for a price surge towards new all-time highs.
US Market Influence
While Bitcoin’s price correction has been ongoing for the past few months, there is no singular cause for this decline. However, examining the US market can provide valuable insights. The Coinbase premium gap, which measures the difference between Coinbase’s BTC/USD pair and the BTC/USDT pair on Binance, offers a comparison of demand and supply between the US market and other countries. The recent volatility in the Coinbase premium gap, particularly on the downside, suggests significant selling pressure from wealthy US investors and institutions. This selling pressure is likely contributing to the current downward trend in Bitcoin’s price. As long as this trend persists, the outlook for a bullish continuation remains bleak.
While Bitcoin’s price has been consolidating and facing downward pressure, there are signs of a potential reversal towards a new bullish trend. Traders and investors should closely monitor key price levels and market dynamics to determine the likelihood of a breakout above the descending channel pattern. Additionally, keeping an eye on the US market and the behavior of institutional investors could provide valuable insights into the future price direction of Bitcoin.
