Ever since the BTC price triggered a massive breakout to the ATH, the markets have become highly optimistic about the next price action. The upper targets were elevated beyond $110K to $115K ahead of the yearly close. However, the rally is experiencing a major hindrance, primarily because of the bulls’ weakness instead of an increase in the buying volume. This could raise some concerns about the next course of action in 2025, which is speculated to be the year of a bull run, elevating the Bitcoin price to levels above $150K.
After the breakout in November, the price continued to trade within a rising parallel channel. Interestingly, the token breached the channel to mark a new ATH above $108K, which attracted bearish attention. Initially, the pullback appeared to be a small retracement, aiming to attract fresh buying volume. Meanwhile, the correction got more intense, which has raised concerns of the next price action as the rally has broken below the channel.
What’s next for the BTC price rally ahead of the yearly close?
The daily chart of BTC appears to be bearish as the rally has broken down the bullish pattern. But the larger concern lies within the technicals that do not pose a high risk at the moment but suggest the price may remain within an extended bearish influence. The MACD shows constant selling pressure suggesting a drop to the interim support close to $92,000. The MACD had undergone a bullish crossover, but in no time, the bearish crossover that followed validated a strong pullback. On the other hand, the OBV, or on-balance volume, a volume-based indicator, remains bearish as it trades along the descending trend line.
Moreover, the OBV continued to plunge while the price maintained a steep upswing towards the highs. Hence, this suggests the upward momentum could lose strength anytime, resulting in a price reversal very soon. As the smart money does not appear to be taking part in the price movement, a breakdown has already occurred as the breakout towards the ATH was a false one.
Therefore, the levels at $92,100 could be pivotal, as a rebound from here may not invalidate the bearish trajectory but keep the token within the bullish range. A failure may cause the Bitcoin (BTC) price to plunge and enter the support zone between $88,900 and $89,700. A rebound from here could revive a consolidated ascending trend; otherwise, it could be the beginning of a fresh bear market.
