After the latest pullback, market participants are failing to regain their lost confidence in the rally, which has been reflected in the majority of the tokens. The narrow trend of the Bitcoin price rally has been validating this claim, which is flashing both bullish and bearish possibilities for the token. The BTC price has just confirmed a new resistance after a fakeout beyond the range in September. Hence, this resistance is a critical one to decide the next course of action.
The BTC price attempted to move higher above the 200-day MA but failed which ended with a long upper wick and closing at the session low, a very strong negative candle. Now that the price rally has confirmed the newly formed resistance at these levels, the technicals indicate that Bitcoin is ready to continue lower in the coming days or weeks.
Will the BTC price drop back below $60,000 or even lower?
As seen in the above chart, the BTC price continues to trade within the descending parallel channel, holding up the bearish hopes for the crypto. Ever since the rally dropped below the 200-day MA in August, the bulls have been failing miserably in recovering above the levels and ended up trapping some at the local highs. The volatility has also dropped heavily after a 5% recovery, compelling the token to remain consolidated within a narrow range.
Secondly, neither the bulls nor the bears possess strength, and as a result, the token could remain consolidated for a longer time frame. However, the price has attempted a couple of times to clear the resistance, which suggests the bulls are gearing up. However, the volume remains the main concern, which has not seen any major jump. This may suggest a bearish possibility, but the technicals remain in bullish favor, which may keep up the momentum and elevate the levels back to $66,000 very soon.
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