New Signal Indicates Bitcoin’s Bearish Trend Persisting: Is $48K the Next Target?
The anticipation of a possible Bitcoin (BTC) rebound appears to be waning, as indicators point towards potential further declines in the coming days.
Factors Contributing to the Bearish Sentiment
Several factors contribute to this bearish outlook, including the ongoing sale of seized BTC by the German government and repayments from the defunct Mt. Gox cryptocurrency exchange.
- BTC/USDT chart indicates Bitcoin trading within a descending channel, suggesting a sustained bearish trend.
- Key resistance levels at $66,982, $71,868, and $73,949, while support levels at $60,162, $57,449, and $48,185.
Price Consolidation and Forecast
Bitcoin’s price has been consolidating within a descending channel, with a potential rising wedge pattern indicating further downside risk. The current price nears the upper boundary of the channel and horizontal resistance level between $60,752 and $60,162.
- A breakout above this zone could signal a bullish reversal towards $66,982.5 and $71,868.6.
- A failure to break resistance and drop below the wedge pattern could lead to declines, with support targets at $54,500, $50,500, and $48,185.
Market Sentiment and Trading Strategies
The Crypto Fear & Greed Index, tracking market sentiment towards Bitcoin, has fallen to “extreme fear,” the lowest level since January 2023.
- Bitcoin index score declined consistently since reaching “extreme greed” on March 5, following Bitcoin’s all-time high of $69,000 in November 2021.
- Recent economic and geopolitical events have contributed to Bitcoin’s decline, exacerbated by struggles to surpass the $60,000 threshold.
Trading Approaches
Traders and investors may consider long positions on a breakout above $60,752, targeting $66,982.5 and $71,868.6. Conversely, short positions on a breakdown below the wedge pattern with targets at $54,500 and $48,185.
The cryptocurrency market is volatile and subject to rapid changes. Conduct thorough research and employ appropriate risk management strategies to make informed decisions.
Hot Take: Bitcoin’s Future Outlook
The anticipated Bitcoin rebound may not materialize soon, with indicators showing potential further declines. Traders should exercise caution and monitor key levels closely to navigate the current bearish trend effectively.
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