Bitcoin Reveals A Bearish Reversal in Progress

Bitcoin’s recent price action unveils a critical shift in market sentiment. A key resistance level has emerged after a powerful rally that pushed prices beyond $70,090.40 and reached an impressive high of $108,460.50. This marks the apex of the bullish trend, setting the stage for a potential reversal.

 

The subsequent bearish reaction from the $108,460.50 resistance highlights a change in momentum. Prices fell below the $99,960.30 supply zone, initially suggesting a retracement might occur before resuming the uptrend. However, this expectation was negated as the formation of a lower high confirmed weakening bullish strength. Adding to this, a head-and-shoulders pattern—a hallmark of bearish reversals—has materialized, signalling the increasing dominance of sellers.

BTC Key Levels

Demand Levels: $81,620.50, $70,090.40, $59,500.70
Supply Levels: $89,750.60, $99,960.30, $108,460.50

What Are the Indicators Saying?

The Relative Strength Index (RSI) underscores declining momentum, reflecting reduced bullish strength as the price fails to sustain upward movement. This aligns with the bearish narrative, hinting at growing selling pressure.

Moreover, Bitcoin has dropped below the moving average, a clear bearish signal. This confirms a shift in sentiment, with sellers increasingly controlling the market direction. These technical insights suggest that Bitcoin could be entering a sustained bearish phase, with key levels playing a crucial role in determining the next move.

Learn from market wizards: Books to take your trading to the next level.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Angelina Jennifer

• 

  Tom Clark

• 

  Dan Atkinson

• 

  Lending Works