The bearish pressure just intensified within the crypto space as the Bitcoin price closed at $38,500. The bulls and the bears are exhibiting equal pressure, which signifies the struggle between the bulls and the bears. The huge wick formed on either side suggests the formation of a ‘Doji’ candlestick pattern with huge wicks on either end. Here, a slight rise in dominance may lead the rally in their respective directions.
With this, has the BTC price reached the local top, or is it just a trap to jam the bears at the interim lows?
Bitcoin has been dumping for weeks now and is now close to under a bearish crossover on a daily EMA ribbon, which may fuel the bearish fire shortly. Besides, the price also appears to be positioned to set an exponentially higher low, which is also a ‘Parabolic Trend’. With this, a notable upswing may occur, but only after a decent pullback.
Now that a lot of fear and panic is around the BTC price and the crypto market, a weekly close above or below $40,000 may have a huge impact on the impending trend.
The current price action displays the probability of a dual price action, as the levels at $40,000 may be extremely important for the price this week. The bearish pressure is coiling up, and hence the possibility of a rise in the bearish momentum continues to prevail. Besides, the RSI is utilising all its strength to trigger a healthy rebound, which keeps bullish hopes alive. Therefore, the BTC price action in the upcoming days of the week could be extremely crucial, which may decide the next course of action for the flagship crypto.
It’s just the start of the week, and hence, more things could happen with the Bitcoin price. If the weekly close achieves levels above $40,000, then we just had a range deviation below, leading to a continued upside. Or else, if the levels close below these levels, then the markets can expect a deeper pullback to the area of $34,000 to $30,000 levels.
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