A fresh wave of volatility has hit the crypto markets as the prices of the majority of the cryptos have been fluctuating close to their support levels. Meanwhile, the Bitcoin price is also facing equal bullish and bearish pressure, which suggests a major price action is on the horizon. However, the question remains why the BTC price is facing immense upward pressure despite the bullish sentiments hovering around the star crypto.
Bitcoin reacted well to the previous resistance between $65,650 and $64,200 and completed 5 impulse waves, which indicated that a corrective wave may soon begin. Besides, a regular divergence was seen between the two peaks, which later formed a ‘head and shoulder’ pattern, resulting in a breakdown from the trend line
As the chart suggests, the BTC price continues to trade within a descending parallel channel and has been trading along the average levels in the past few days. The ADX faced a bearish divergence and both the DMI levels are diverting without intersecting, suggesting a minor consolidation may make its way out. Besides, the RSI continues to hover along the average range, substantiating the consolidating phase.
Therefore, the Bitcoin price, which is trading close to $62,000 with a drop of nearly 3% along with a squeeze in market capitalization, could continue to plunge for another few days. The current trade set-up suggests the BTC price is on its way to form new lows, probably below $60,000 in the coming days. However, a rebound or a strong recovery may happen but it depends on the market sentiments and the mounted upward or downward pressure.
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