The Bitcoin price faced a rejection from the yearly highs above $38,400 a few days ago. The price further underwent a parabolic recovery to regain the lost levels above $38,000. Besides, the buying pressure has eased to a large extent, causing the price to slightly drop below the daily high of $38,377. This may indicate the mounting strength among the BTC bulls, but the trade set-up hints towards a significant bearish action in play.
The token faced rejection after hitting equal highs within a higher time frame region. Presently, the bulls are holding the price firmly along the newly formed support levels around $37,900. A fine rebound may soon cause a huge upswing within the BTC price that may propel it beyond $39,000 for a while. Woefully, a steep bearish action may follow that may even break the pivotal support zone around $35,600.
Why BTC price is flashing bearish signals?
Considering the above chart, the BTC price appears to have accumulated enough strength, as an interim rejection from the 1 FIB levels has not caused a drastic squeeze on profits. Besides, the buying volume has mounted to some extent, which may offer a fresh upswing in the coming days. Moreover, the current price action appears to be following a recent trade set-up that resulted in a 5% drain after forming new yearly highs.
Additionally, the RSI is bearish in the short term, and hence the initial rejection may now validate a push back up towards equal highs. The bearish presence around these regions may eventually cause the’real flush down’ that may begin after testing the equal highs. However, every dip can be considered a blessing at this stage, and the Bitcoin (BTC) price seems to be preparing for a massive move in the long term.
