Bitcoin ($BTC) Price Trends Downward: Will the Decline Persist?

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As a seasoned researcher with years of experience tracking Bitcoin‘s price movements, I’ve seen more than a few bull and bear cycles. The recent downward trend of BTC seems to be following a typical pattern, but there are some promising signs that could lead to a recovery.

For the past five days, the price of Bitcoin ($BTC) has predominantly dropped. At present, it hovers slightly above $95,000. Will this downward trend persist, or is there a possibility of a significant rebound as we approach the end of the year?

A perfectly normal $BTC trajectory

Over the past few days, Bitcoin, the dominant cryptocurrency, has been moving sideways and even experiencing a slight downtrend. Remarkably, its price dipped to $92,700 on Thursday and Friday, a level not seen since over a month ago.

From then on, Bitcoin (BTC) has been moving along an inclining trendline, deviating from this channel during the recent price drop. Considering that rising channels often break towards the downside, Bitcoin’s path in the past few weeks has been typical and expected.

After the past weekend’s bearish stretch has ended, and our short-term technical indicators have been recharged, it may be possible that we’ll begin to see some positive candlesticks emerge, potentially reversing the recent negative trend.

Will MicroStrategy announce another purchase on Monday?

A potential boost for Monday’s continued positive trend might come from MicroStrategy potentially announcing another Bitcoin purchase. As seen on Michael Saylor’s MicroStrategy Portfolio Tracker, green dots representing purchases have consistently appeared every Monday since 11 November. So, it wouldn’t be unexpected if they made another purchase today.

Can $BTC reenter the ascending channel?

On the 4-hour timeframe, we can see the recent path of Bitcoin (BTC). Today, Bitcoin has already seen a 0.80% increase, suggesting that its movement outside the current channel might not happen immediately – at least for now.

The upward slope, tracing back to the double top of the 2021 bull market, has been a point of respect. So far, it has provided robust support and might continue doing so in the future.

Should the recent corrective phase truly come to an end, potential upcoming milestones for Bitcoin (BTC) include levels at $98,000, $100,000, and $102,000. These figures not only serve as strong support and resistance points, but they also align with Fibonacci ratios. Achieving these targets would bring BTC back within its ascending trend line. Reaching the upper boundary of this channel once more could result in a new record high.

$BTC cup and handle pattern predicts $120,000

A lot of insights can be derived from the graph over the past two weeks. Notably, an upward slope running through the peak of the 2021 bull market’s double top is quite visible. Additionally, it’s worth mentioning that this line seems to be providing support for the current price level.

Reflecting on the rollercoaster journey from the peak in 2021’s bull market to the subsequent bear market, and now back into this new bull phase, it appears a ‘cup and handle’ chart pattern has unfolded. The ‘handle’, or consolidation period, was marked by an extended eight-month bull flag, following which the price surged from its base around $69,000. I believe we’re still in the running for the predicted upward move to $120,000, given this pattern.

RSI could signal the next bear market

At the base of the graph lies the Relative Strength Indicator (RSI), a tool that signals when an asset is oversold or overbought. Lately, due to the recent corrective surge, this indicator has turned downwards, suggesting a new lower low compared to the previous two peaks visible on the chart. This could indicate a potential downturn in the market.

It’s quite possible that the 70.00 level might function as a support point. If the indicator line ends up below this level by the end of the week, it’s likely that the current downtrend will persist.

If the indicator line fails to surpass its earlier peak at 87.00, it could lead to a significant bearish contradiction. This contradiction might mark the conclusion of the current bull market and herald the beginning of a new bear market.

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2024-12-23 14:06