BTC Could Correct if No Positive ETF News Enters the Market Soon
BTC finds itself at a critical juncture, resting precariously on the $34K support level. After recently reaching a peak of $35,280 in the past few days, the market leader's price has steadily declined over the last 48 hours. This decline puts the cryptocurrency at risk of potentially correcting down to the $31,400 support level in the coming days.
The validity of this bearish scenario could be confirmed if BTC breaks below the $34K mark within the next 24-48 hours. Should sellers continue to exert pressure on the market leader's price, there is a possibility of it dropping as low as $28,760 in the short term.
Adding weight to this bearish outlook is the formation of a bearish ascending wedge on BTC's daily chart, a pattern that often signals an impending pullback. The RSI (Relative Strength Index) on the daily chart also supports this notion, as it indicates a weakening of buying strength and places BTC in extreme overbought territory, a condition often seen as a prime opportunity for shorting in the eyes of traders.
However, it's worth noting that BTC might still have the potential to climb in the coming days, as the bearish chart pattern is a medium-term indicator. Consequently, the market leader may attempt to challenge the $36,900 barrier in the week ahead. This bullish thesis may be invalidated if BTC closes a daily candle below $34K in the next 48 hours.
The validity of this bearish scenario could be confirmed if BTC breaks below the $34K mark within the next 24-48 hours. Should sellers continue to exert pressure on the market leader's price, there is a possibility of it dropping as low as $28,760 in the short term.
Adding weight to this bearish outlook is the formation of a bearish ascending wedge on BTC's daily chart, a pattern that often signals an impending pullback. The RSI (Relative Strength Index) on the daily chart also supports this notion, as it indicates a weakening of buying strength and places BTC in extreme overbought territory, a condition often seen as a prime opportunity for shorting in the eyes of traders.
However, it's worth noting that BTC might still have the potential to climb in the coming days, as the bearish chart pattern is a medium-term indicator. Consequently, the market leader may attempt to challenge the $36,900 barrier in the week ahead. This bullish thesis may be invalidated if BTC closes a daily candle below $34K in the next 48 hours.
Comment:
An ascending triangle had formed on the chart, not a rising wedge