Bitcoin Enters the Buy Zone; Will This Bring the BTC Monthly Trade Above $43,000 or Down to $42,500?

After maintaining an upward trajectory for a couple of days, Bitcoin is undergoing a price squeeze as it approaches $42,500. The selling pressure is coiling up slowly, which suggests the price may witness an extended downward trend. Besides, the latest pullback has dragged the token back to the liquidity area, which also flashes a bullish signal for the flagship crypto.

According to reports, many long positions were placed as soon as the BTC price triggered a rebound from the lows at $38,500. This caused the price to rise above the descending trend line that it trades since the price rejected the yearly highs close to $49,000. However, soon after this, the price began with the accumulation phase and now appears to start with a fresh distribution phase.

With this, do the bearish possibilities for the BTC price outperform the bullish attempt?

The above daily chart displays a drop in volatility, and the volume also drops to a large extent, which is favourable to the bears. The drop in the Average True Range (ATR), which measures market volatility, has been constantly plunging. Alongside the Bollinger Bands, which suggests the probable resistance and support levels of the rally are converging. The upcoming trade suggests the bands may continue to squeeze, which may compel the price to drop below the ascending trend line, which has been acting as a strong support for a long time. 

Now that the monthly close is on the cards, the volatility is expected to drop with a slash in volume. Therefore, the Bitcoin (BTC) price is expected to close the monthly trade on a bearish note, testing the pivotal support at $40.500. However, a rebound may consume more time as the market participants currently appear to be uncertain.

Hence, the price could consolidate along the support for a while and with the rise in the optimism around Bitcoin halving, BTC price may trigger a bullish trend soon.

Related posts

Algorand partners with the Clinton Foundation to tackle Climate Change!

EdaFace Admin

Underestimated Giants or Hype? VC Spectra’s (SPCT) Shocking Prediction

EdaFace Admin

Evaluating 2024 Potential: Dogecoin, Shiba Inu, and BEFE Coin Price Predictions

EdaFace Admin

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More