After printing significant bullish candles since the beginning of the second fortnight of June, the Bitcoin price has been facing fresh bearish action since the early trading hours. Although the plunge does not record any drastic levels, it appears to be the beginning of a strong bearish trend. Besides, some also speculate that the bulls will continue to accumulate strength, which may raise the price beyond $27,000 in the next few days.
Will the upcoming Bitcoin breakout be sustained, or is it a trap set up for the bulls?
In the past few days, the Bitcoin price has been surging, fluttering significant bullish flags for the crypto. The price continued to trade within a falling wedge, which clearly appeared to be coming to an end soon. Presently, the price continues to remain stuck within a narrow range and hence is believed to undergo a bullish breakout above the wedge very soon.
After the recent rebound from $24,800, the long-term price action of the Bitcoin price suggests the price is ready for a bullish breakout that may reach the 0.618 FIB levels at $28,480. However, to do so, the price needs to slice through the interim resistance at 0.3 and 0.5 FIB levels at $27,008 and $27,746. Even if the bulls push the price beyond these levels, rising above the crucial levels at 0.618 FIB around $28,480 could be a daunting task.
These levels are popular to reverse the trend of the BTC price as it did before, and hence the large possibilities of a rejection haunt the rally. Besides, from the Elliot wave perspective,it appears that the wedge is leading the first wave diagonal pattern, indicating the beginning of a huge crash. Presently, the price is trading in the 2nd wave, which could be marginally bullish and is about to end very soon.
Alongside, an unfilled CME gap may also attract the BTC price rally towards $21,000, but the probabilities of testing lower levels are also quite possible. Presently, Bitcoin continues to trade under bearish influence as it is still within the parallel channel since the 2021 highs. Therefore, it may be a good opportunity to short Bitcoin as the trend may soon test the upper resistance of the channel and may face a rejection ahead.
