Bitcoin price is attempting to break above the bearish trend, but the market sentiments are dragging the price lower. With the announcement of Tesla letting off its 75% of Bitcoin reserves, the markets responded negatively as the global crypto market cap tanked down by more than 3.5% but stands firm above $1 trillion.
As Coinpedia reported earlier, the current upswing may just be another bullish trap, Tesla selling Bitcoin has heavily fueled the rejection. Bitcoin after marking its presence above $24,000, faced a massive rejection at crucial resistance at $24,200.
No doubt the star crypto may eventually rebound, but as per some predictions, BTC price is still primed to hit the range of $15,800 to $16,200.
The lower time frame suggests the BTC price is still dominated by the bulls as the asset is constantly forming higher highs and lows. But the higher time suggests the bears are in charge of the rally and allowing the price to jump to just trap the bulls at the peak.
The asset is expected to swing within a narrow range as it did when it tested the higher highs and eventually drop towards the lower support. The daily chart displays the possibility of a huge rejection which is underway that may drag the price lower to $16,000.
Mainly due to the reason that Bitcoin has marked the higher high and hence primed to drop towards the lower lows which is around $16,000 or much lower. On the other hand, RSI & MACD also support the bearish claim as both are about to flash a huge bearish signal very soon.
Therefore, the Bitcoin (BTC) price despite displaying strength in the short term is still unable to break above the bearish trend. Any resistance above $24,000 does not appear strong to offer a strong base to the asset in case of rejection. Therefore, until the bulls drop in and uplift the price, these minor upswings are subjected to nullification.
Presently, $22,000 are the key levels to consider, as a rejection from these levels may pave way for the asset to mark now lows soon.
Was this writing helpful?