Bitcoin Flashing Bearish Signals-Is the BTC Price Attempting to Trap the Bulls?

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The post Bitcoin Flashing Bearish Signals-Is the BTC Price Attempting to Trap the Bulls? appeared first on Coinpedia Fintech News

With the growing trend of new tokens like PEPE or BRC-20 tokens, the Bitcoin price is experiencing stagnant price movement. The choppy price actions of the top popular tokens are expected to continue as the token is closer to validating a bearish pattern. Although the price just rebounded from lows below $26,000, it cannot be certified as the resurgence of a bullish trend, and hence the bulls are expected to be trapped for a while.

The BTC price experienced a fresh price jump that successfully tested the 200-day MA levels. Besides, the Bitcoin MVRV-Z score had surged back to positive levels, which hinted at the end of the bearish market. Additionally, the price also underwent a failed breakdown, meaning the price sliced down the lower support of the descending triangle and quickly bounced back to re-enter the pattern. This also indicates the completion of a bearish retest, and hence the price may now be ready to undergo a bullish breakout.

However, the bearish clouds do not appear to have waned to a large extent, as the BTC price is closer to breaking below the bull flag pattern. A popular analyst, Rekt Capital, believes that a rejection from these levels may drag the BTC price lower in the coming days.

First, #BTC failed to reclaim the $28800 level on the Weekly (orange)

And then $BTC Weekly Closed below $27600, failing to hold it as support (black)

Turn $27600 into resistance and this could enable further downside into the low $20000s#Crypto #Bitcoin pic.twitter.com/bjuxCNbCzx

— Rekt Capital (@rektcapital) May 15, 2023

Although the price is trying to rebound, the BTC price is required to reach minimum levels of $27,600 support. The analyst believes that if the price is able to reclaim the levels around $27,600, then the trend may form a falling wedge pattern as the condition remains dynamic at the moment.

Overall, the trend continues to remain bearish as the BTC price failed to reclaim the $28,800 weekly range. Rather, the price closed below $27,600 as it failed to hold the interim support. Hence, if the Bitcoin price rises beyond the $27,600 resistance, then a significant upswing may be expected; otherwise, the trend may plunge hard to mark the lows close to $20,000.

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