• July 16, 2024

BTC Feared to Drop After Testing These Levels

The Bitcoin price started the day’s trade on a bullish note and soared above $43,000, but the bears soon dragged the levels back. This rise could be a result of a euphoric rise caused by MicroStratergy’s latest purchase of $614 million in Bitcoin, as the institution now holds over $8 billion. However, the BTC price carries a hidden bullish divergence, which may trigger a healthy upswing beyond the prevailing consolidation. 

The current trade setup displays the price range within a well-packaged channel. The price in the past few days has rallied a bit but struggled to hold the gains as it failed to maintain a healthy upswing. While the possibility of a bullish rebound looms over the BTC price rally, the probability of the bulls losing their strength also emerges. 

Source: X

The above chart shows the price to be maintaining an upward trajectory while the OBV, or on-balance volume, is plunging below the ascending trend line. OBV is a technical indicator that uses volume changes to identify price trends, suggesting the price may undergo a fresh bearish reversal. Although the trend is bullish, the OBV appears bearish and is breaking down. Besides, the supertrend is still in play, which suggests the price will remain bullish until it continues to hold within the wedge. 

Further, a breakdown of the wedge before it reaches the apex of the consolidation can be considered a sign of strength. This may elevate the price levels close to previous highs, as it may result in a breakout from the bull flag. Besides, if it starts forming a longer flag, it indicates a drop in demand, which may hurt the price. Therefore, a breakout from the pattern is the need of the hour suggesting the Bitcoin (BTC) price is getting ready for the next price action. 

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