Bitcoin came up short of reaching another record-breaking price of $72,600 on Monday, causing a dip of nearly 5%. The question now is: will this price decline continue, or is Bitcoin prepared for another run toward setting a new all-time high?
Strong ETF outflow on Monday drags on $BTC price
possibly Bitcoin took a break before trying to reach $73,800 again, or perhaps it was the significant sell-off in Bitcoin ETFs on Monday that led to a large withdrawal of $303 million from Grayscale’s ETF (GBTC), which Blackrock (IBIT) didn’t replicate. The net withdrawal for the day totaled $223 million.
$BTC price returns to confirm top of bull pennant
In simpler terms, over the past 4 hours, the Bitcoin price behavior has been clear-cut. After being denied at the $72,600 resistance level, it was expected that the price would retreat. Subsequently, it confirmed the peak of the triangle pattern by returning to its previous high.
The anticipated support at $69,000 within the triangle did not materialize since the upper triangle trend line effectively kept Bitcoin’s price in check. It is uncertain whether Bitcoin will experience some price consolidation for a duration to enable shorter term stochastic RSI indicators to regain momentum.
Weekly candles indicate tug of war between bulls and bears
In simpler terms, the larger time frame of a week’s candles tells an intriguing tale. A red candle signaling a new record high indicates fierce struggles between buyers and sellers, ultimately ending in a stalemate. Following this, a bullish hammer candle seized control from the sellers due to its characteristic long upper shadow, illustrating how quickly the buyers stepped in to purchase.
The following candle had a green body with long wicks, indicating strong buying pressure, allowing the bulls to maintain control. Subsequently, last week saw the appearance of a hanging man candle. This type of candle pattern is often seen as a potential reversal signal, implying that bears may now have an opportunity to take charge.
In other words, the outcome of this week’s trading significantly affects the current market trend. If the price breaks above the hanging man candle formation, it might indicate a shift in the direction of the market, moving beyond the recent price range.
The stochastic RSI’s weekly developments are worth noting as well. At the moment, it seems that the signal lines are losing their slope, potentially indicating an imminent reversal. Such a scenario could lead to a strong resumption of the bullish trend.
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2024-04-09 13:07