Bitcoin continues to hover around $29,000 throughout the weekend, signaling the possibility of a bearish pullback
Bitcoin volatility is decreasing every day, and after a few weeks of brief consolidation, it could trigger a major market move
As rumors of Bitcoin ETF rejection continue to surface, speculation about Bitcoin ETFs has also risen. This could be the main reason for forcing Bitcoin prices to remain in a small range. This could be a strategy to convince investors that an ETF may not be approved. This keeps the market speculative and consolidated. This also helps institutions accumulate coins at a discount.
While uncertainty remains largely surrounding the star cryptocurrency, the possibility of a bearish reversal hangs over the space. The price has remained above the $29,000 level for more than a week, suggesting that the strength of the bulls is decreasing. Therefore, a drop towards one of the major supports near $28,500 is possible. This could further lead the price towards the critical $27,000 level.
BTC price is located in the middle of a descending channel or falling wedge. It is about to touch the lower support and complete a rest test of the upper trendline. To trigger a long-term rise, the price needs to correct the downtrend and end trading near $28,000 or even lower around $27,000 which could enable the bulls to adjust the price resulting in a sharp move back above $30,000.
Considering the current trading setup, the price seems to be on the verge of the fourth phase of the Bitcoin cycle. After reaching Peak 1 and Peak 2, the coin experienced a massive sell-off. A minor recovery ensued, mostly within an ascending triangle. The breakout of this triangle led to the massive breakout that previously sparked the bull run. Moreover, the halving also played an important role in fueling the surge and setting a new ATH.
Therefore, a similar price action is currently expected to occur with a target of $100,000. The bulls who have been holding on above $50,000 are also expected to strengthen their actions, creating a huge obstacle for Bitcoin bulls to hold on.