Currently, a new bearish pattern has emerged in the Bitcoin price action, which indicates that Bitcoin may fall below a one-week low in the coming days. After failing to stabilize above $29,400, the Bitcoin price is struggling to stay above $29,200. A new wave of bearishness may be triggered soon, and Bitcoin may fall below the key support level of $28,800. Although the Bitcoin price has recovered recently, it is still under the bearish influence, so the upward momentum seems limited.
1. Short-term technical analysis (see above):
Bitcoin price triggered a bullish wave a few days ago, but has now turned down and erased all the gains. Currently, its price is hovering at the 23% Fibonacci retracement level and is testing one of the important resistance levels of the 20-day moving average, which is $29,236. At the same time, the price has encountered several declines at this level since the early trading, which shows that a bearish reversal may be coming soon. If the Bitcoin price fails to hold the key support level, it may soon plummet to the 0% Fibonacci level of $28,872.
2. Long-term technical analysis (see the figure below):
Despite the bearish signals in the short term, the long-term forecast is very bullish. Bitcoin price seems to be replicating the previous trend, which will eventually lead to a massive uptrend that could push Bitcoin price above $35,000. Every time the decline in Bitcoin price tests the downtrend line that has been in place since the beginning of the year, its price triggers a bullish rally. Therefore, it is believed that Bitcoin price will hold the uptrend line and temporarily decline to test the support of the downtrend line, which is expected to inject more liquidity into Bitcoin, which in turn will push its price above the main resistance level of $32,557 and then the resistance level of $34,484.
(The above views are from CoinPedia and are for reference only.)