Bitcoin Bulls Lose Control as Bears Gain Upper Hand
Bitcoin price action has been dominated by bulls, maintaining an uptrend structure. However, a recent breakdown in BTCUSD has given bears the upper hand for the first time in 2023.
Main Breakdowns:
- A lack of volatility and prolonged sideways trading range suggested a big move was coming.
- Bears swatted down Bitcoin price by 10% in a single day, putting the 2023 uptrend in jeopardy.
- The Average Directional Index (ADX) measures the strength of a trend.
- If red is above green on the ADX, bears are in control of the trend direction.
- If the ADX starts rising and red is above green, more bearish price action could follow.
Bears Regain Control, Bears on Weekly Timeframes Could Dominate
Bears have gained control of Bitcoin price, with red above green on the ADX. The ADX is falling but still above 20, confirming the existence of a trend. If the ADX starts rising and red remains above green, another wave of bearish price action could follow. This could also tip the favors back into the clutches of bears on the monthly BTCUSD chart, an unprecedented scenario in Bitcoin’s history.
Hot Take:
The recent breakdown in Bitcoin price has shifted the control from bulls to bears. The ADX indicator suggests that bears are currently in control of the trend direction. If the ADX continues to rise and bears maintain their dominance, we could see further bearish price action. This shift in momentum on both weekly and monthly timeframes is a significant development in the history of Bitcoin.
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