The Bitcoin (BTC) weekly chart reveals a complex interplay of technical indicators and potential future price action.
Currently, BTC is trading near the 50% Fibonacci retracement level of its previous significant move, a critical support/resistance area around $29,000. A descending trendline from the all-time high adds another layer of resistance, currently intersecting with the Fibonacci level.
The chart also highlights a double-top formation, a bearish reversal pattern, with the neckline around $65,000, which has been breached. This breach, combined with the failure to hold above the 555-period Simple Moving Average (SMA), suggests a bearish bias.
Two key liquidity levels are identified: the 555 SMA around $73,000 and the "SSS Trendline Liquidity" (potentially a support zone) around $14,900. The latter, being a significant distance away, indicates the possibility of further downside before a potential reversal.
The "80% of Weekly Range" zone around $43,500 represents an area of high volatility, suggesting potential price swings in either direction.
Overall, the chart paints a bearish picture for BTC in the short to medium term. However, the presence of key liquidity levels and the volatile nature of the market suggest the possibility of sharp reversals. Traders should exercise caution and carefully consider these factors before making any decisions.
