Have the Bulls Taken Over the Rally or More Bearish Action is On the Horizon for the BTC Price Rally
In recent memory, market sentiment has dropped to 20 for the first time, indicating fear. Additionally, the massive outflow of ETFs is worth more than $1 billion, with Blackrock’s record of more than $418 million or 4,200 BTC, the largest outflow. This puts the price of Bitcoin close to $82,000, which causes a large amount of purchase interest. Currently, the Bulls have triggered a strong rebound and have raised their levels above $86,000. However, the question arises whether the current flip can be long or bull traps.
this BTC price It has experienced one of the steepest three-day declines since November 2022, disappearing from the market by more than $300 billion. Still, some supporters are bullish on Bitcoin as they claim that once the price enters the demand zone, it can trigger a bull revival. However, from a broader perspective, the token remains under bearish influence, so the current rebound can be viewed as a short-term relief.
Weekly RSI attracts attention
RSI is considered one of the important indicators that helps determine the next move of the rally. It is used to identify buying and selling points and horizontal mergers. From a longer perspective, the indicator remains bearish, while the price continues to be higher. Previously, when RSI and price showed an inverse relationship, it led to the beginning of a bear market.
As can be seen from the chart above, the weekly RSI continues to form lower highs and lows when the price forms higher highs and lows. Back in 2021, a similar pattern occurred, which caused BTC price to fall from highs near $69,000 to a bottom below $16,000. Despite the Bulls’ efforts to validate the rebound, the Bears’ strong grasp of the rally, which keeps increasing prices. So if the BTC price can’t rise and ensure a level above $100K, a similar pattern may appear, dragging the level by 50%.
More bearish moves coming from BTC prices
At a time when Bitcoin prices encounter huge sales pressure, each rebound is seen as the beginning of the recovery phase. However, past trade patterns indicate that prices have not yet entered the demand zone. The realized price and profit/loss margins indicate that the token is expected to witness more bearish heat.
The above chart is shared by popular analysts Aliindicating that since 2022, when traders realize loss profit margins reach -12%, buying opportunities always occur. Interestingly, these levels have reached -8.25%, indicating that the rally is close to the 2022 buy zone. While some believe that traders may have previously discovered buying opportunities, the correlation between realized prices and P/L margins has raised concerns about market psychology and investor behavior.
Then what is next?
Although some analysts believe the current rebound may be the end of a bearish trend, liquidation levels indicate that prices have taken different prices. After the latest price action, large, leveraged clusters were installed on both sides. This suggests that Bitcoin prices may see huge volatility in the next few days. Therefore, more downturns are expected at the end of the month, and if the price starts to start new monthly trading with bullish notes, it could rise to the end of the quarter.
