Bitcoin began the fresh weekly trade on a huge bullish note by marking an intraday high of around $28,447. Alongside, a huge CME gap of more than $1000 was also recorded with the start of the day’s trade, which is carrying a fear of a shot term pullback in the near future. Now that the bulls have again turned on the passive mode, a bullish continuation for the rest of the day appears to be pretty difficult, but the monthly close could be under the bullish influence.
The BTC price soared beyond $28,400 during the early Asian trading hours but soon encountered bearish action. One of the important reasons for the bearish pullback may be considered the formed CME gap between $26,970 and $27,915. The price in recent weeks has always filled the gap, triggering a significant plunge; hence, an interim pullback currently appears imminent.
As seen in the above chart, the BTC price has formed CME gaps every week and has also plunged to fill them in the next week. However, the current gap is pretty huge compared to the previous one, so a drop below $27,000 appears to be on the horizon. Although the price started the weekly trade on a bullish note, it continues to remain under the lower high formation. But will it ever break above the bearish pattern?
One of the popular analysts Ali Charts, believes that the BTC price may soon enter the ‘Hope’ stage, considering the psychology of a market cycle chart.
#Bitcoin is about to enter the “Hope” stage in the psychology of a market cycle…
Buy $BTC! pic.twitter.com/poSDoVjMhh
— Ali (@ali_charts) May 29, 2023
According to this chart, the Bitcoin (BTC) price has accomplished the complacency, anxiety, denial, panic, capitulation, anger, depression, and disbelief phases. Therefore, once the price displays some stability, then it is believed to rise to the ‘hope’ phase which may further trigger a significant upswing ahead.
Before, every bull run, the BTC price has been trading along these phases and has triggered a significant upswing once the price enters the ‘hope’ phase. Therefore, regardless of the current price movement, Bitcoin is believed to remain bullish in the long term.
