While Bitcoin continues to exhibit a strong long-term bullish outlook, technical indicators suggest a possible short-term downturn could be underway.
Market analyst Lark Davis has identified a bearish trading setup that may offer an opportunity for short sellers.
According to Davis, Bitcoin’s price action is currently confined within a descending channel. The cryptocurrency recently bounced off the upper resistance level of this channel—a move that historically signals weakening upward momentum.
Supporting this view is the Stochastic RSI, which has just flashed a bearish crossover, often interpreted as a signal of an impending decline in price.
Davis suggests that the current structure favors a short trade, with the ideal take-profit (TP) zone positioned near the bottom of the descending channel.
He emphasizes that despite this near-term bearish scenario, the broader trend for Bitcoin remains bullish, suggesting any correction could be temporary.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-faces-short-term-pullback-as-bearish-setup-emerges/