Story Highlights
Bitcoin price has dropped below $62,000 as bulls are starting to lose strength after gaining some strength in the past few days.
The technical picture has been sending mixed signals and prices are expected to remain in a subdued trend for some time
Star coin Bitcoin sparked a significant rally late in the past month, leading to a bullish start to the month. While market participants believe the outlook for the rest of the month is bullish, the coin appears to be retesting lower support as bulls show weakness in pushing the price above the decisive range. Additionally, altcoins are receiving more attention and they are expected to maintain healthy upward momentum, while BTC price is likely to remain range-bound.
The question now is whether the bearish impact has not yet subsided. Will the Bitcoin price trigger a strong correction below $58,000?
Historical chart patterns show that Bitcoin price has been stuck in a range for a few months. After a minor rise above one of the key resistance zones between $62,994 and $63,697, traders are optimistic about the next price move. However, the trend seems to be turning in favor of the bears, which suggests that bears are ready to take profits and cut the 5% level by the end of this week.
The price has rebounded from the lower support area but remains in a bearish territory, which was confirmed by the Gaussian Channel turning bearish. Earlier, when the Gaussian Channel turned bearish, the price was excluded from the average range but this time the level failed to enter the channel. Moreover, the bulls and bears have been fighting for dominance since the start of the trading day.
Therefore, BTC price is expected to consolidate below the lower boundary of the channel for a while due to the impending bullish crossover in the MACD. This trading setup suggests that the price will test the lower support zone between $60,234 and $59,594. Therefore, the coin might reach the upper boundary of the zone, which might attract new liquidity and trigger a new uptick. However, the bulls are expected to turn down the support and drop to the lower boundary below $58,000, which might be imminent.
