Currently, Bitcoin (BTC) appears to be continuing a local downtrend and has dropped approximately 13% or $11,000 since it reached its most recent peak of $108,000. Could we see BTC start to rebound now, or is there still potential for further declines ahead?
Market sentiment losing momentum
Over the past week, the positive enthusiasm in the market seems to be slowing down, with Bitcoin (BTC) following a downward trend since hitting its record high of $108,000. With the price dropping as low as $92,000 last Friday, it’s worth considering whether this temporary decline will persist.
MicroStrategy makes customary Monday buy announcement
Over the past few weeks, MicroStrategy has continued its regular pattern by purchasing more Bitcoin on Monday, this time for approximately $561 million or 5,262 Bitcoins.
U.S. Spot Bitcoin ETFs experience third straight day of outflows
On the other hand, these sales of Bitcoin by U.S. Spot Bitcoin ETFs should be weighed against the fact that they have been consistently selling off Bitcoin for the past three days. Over this period, there has been a total net outflow of approximately 12,000 Bitcoins, with a daily net outflow of around 2,380 Bitcoins on the third day.
$BTC following classic breakdown pattern
Over the span of 4 hours, the Bitcoin price appears to be exhibiting a typical breakdown pattern. It initially dipped out from an upward-sloping channel and then touched the lower trendline of this channel as a test. Afterwards, it seems to be heading further down towards an estimated level around $89,600, which is just beneath the diagonal trendline that intersects the peak of the last bull market’s double top.
$BTC respecting multiple year ascending trendline
The weekly chart view for $BTC shows how the price is currently respecting the aforementioned ascending trendline. A confirmed break below this would at least interrupt this upward trend, and perhaps augur a return to the major bull market support at $70,000.
As a researcher, I find the Aroon Indicator to be a highly valuable tool in my technical analysis, though it’s often overshadowed by more popular indicators such as moving averages, RSI, or MACD. The unique advantage of the Aroon Indicator lies in its ability to measure trend strength and signal potential reversals, making it an essential addition to my analytical arsenal.
Essentially, if the Aroon Up line surpasses the Aroon Down line, it suggests an uptrend, while a reversal indicates a downtrend when the opposite happens.
At the moment, there’s a significant gap between the two indicators. A drop in the Aroon Up line, falling below 70.00, might warrant some caution. However, as it currently stands, this indicator is still suggesting a bullish trend.
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2024-12-24 14:09