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The Bitcoin market is currently navigating a precarious phase, with a recent attempt to breach significant resistance levels falling short, subsequently ushering in bearish indicators. This development follows an upbeat period which saw Bitcoin rallying to a compelling buy zone around $68,900, as highlighted in an analysis by RLinda on TradingView. Despite these gains, Bitcoin struggled to surpass the $69,000 resistance, facing continuous setbacks. This struggle has led to the formation of a bearish engulfment pattern, signaling a potential reversal. The pattern, recognized for its capacity to engulf the previous day’s candle entirely, signifies a depletion of bullish momentum, thereby forecasting a potential correction.
Further extending the analysis, RLinda points out that the recent price rally might have been a facade, misrepresenting a true breakout from the descending resistance trendline established since the all-time high of $73,737. The persistence of this trendline as a barrier to Bitcoin’s price ascents since March, and the recent failure to maintain a breakout, paints a gloomy picture of the immediate future. Presently, Bitcoin appears to be settling into a consolidation phase, just shy of the trendline, which could potentially lead to deeper retracements if this period of stagnation prolongs.
Looking into the future, RLinda postulates a bearish trajectory for Bitcoin, with a potential decline targeting the $65,000 mark as the preliminary threshold. A failure to sustain this level faces the risk of cascading corrections reaching down to $61,000, and even towards the $57,000 vicinity. Yet, it’s crucial to note that this bearish forecast isn’t irreversible. A breakthrough above $69,400 could invalidate the current bearish structure, reigniting bullish momentum and catalyzing a confirmable breakout above the descending trendline. Such a move would mark a significant bullish reversal, reinstating confidence among investors.
At the moment, Bitcoin’s trading activity, which recently marked a marginal 0.6% decline to $66,670, remains congruent with RLinda’s predictions of consolidation below the resistance. The forthcoming days are expected to be critical in determining Bitcoin’s trajectory as it endeavors to conclude October on a positive note amidst fluctuating resistance and support levels. Investors and traders are thus advised to closely monitor these developments, as they could illuminate forthcoming market movements, providing strategic insights for navigating the crypto market’s inherent volatility.
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