Key Support Levels to Watch

The price of Bitcoin has recently dropped below a bullish pattern due to increasing selling volume, causing a significant drop in price. After reaching a high above $44,000, the longs were liquidated, pulling the price below $43,300. While the token remains under bullish influence in the long term, there are fears of bearish pressure in the short term.

The latest downward trend has brought the price close to the lower support region, and a minor pullback below this level could trigger a new wave of bearish activity. In the short term, Bitcoin was trading within a bullish pennant, with expectations of a significant reversal to lift the price higher. However, the new downward trend has pulled the price below the pattern, signaling the start of a fresh bearish trend.

Currently, the BTC price is trading within a megaphone-like pattern, facing rejection from the upper resistance line. This increases the potential for a significant drop, targeting the lower side of the megaphone at around $36,500 to $37,500. Megaphone patterns are known for their unpredictability, capable of breaking out in either direction. If the bulls can maintain support above the lower trendline, the ultimate target of around $50,000 could come under pressure.

On the other hand, the bearish scenario will be confirmed if the price fails to rebound strongly after testing the lower support. If there is rejection anywhere below $43,500, it could trigger a bearish narrative for Bitcoin’s price, possibly dragging it to as low as $38,200 or slightly below.

Despite the potential for a bearish scenario, there is speculation that the Bitcoin price will rebound after a minor pullback.

Historically, Bitcoin has experienced significant price fluctuations, impacting both short-term and long-term trading strategies. Investors in the cryptocurrency market are advised to closely monitor market trends and adapt their strategies accordingly. As the market continues to evolve, the future trajectory of Bitcoin’s price remains uncertain, with potential for both bullish and bearish scenarios. It is essential for traders to stay informed and make informed decisions based on thorough analysis and market insights.

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