Back in 2021, while the Bitcoin was ranging significantly high every new day, more and more people jumped on the moving train. Regardless of the ongoing prices, the traders just accumulated, even at the levels around its ATH. And now, when the BTC prices are reduced by more than half, traders remain aloof. This was mainly due to the less participation of the market participants and/or the traders waiting for the clouds of uncertainty to ease out.
While the current price action indicates the beginning of a strong recovery, the fear of a significant rejection lingers on. Presently, the BTC prices are trading in the same range it was in early May 2022. After undergoing huge price variations throughout May, it appears that the recent spike could stabalize the prices to a large extent. And moreover, now when prices are back above $30,000, it may be presumed as ‘Bullish’, technically.
But the sellers still have an advantage at the spot rates!
As per the formation of the BTC-daily chart, the path of the least resistance is towards the south. This is mainly due to the fact that the prices are trading below the primary liquidation levels at $32,000 as the bulls are constantly failing to close above these levels. The rejection at $32,000, multiple times was mainly due to the high trading levels that resulted in the bearish engulfing bar. Therefore, the risk of being rejected again is still in place unless the trend definitions are clear.
The trend would be bullish as the prices settle above $32,000, and bearish if they tank down below the support levels at $28,700. Therefore, the recent spike may certainly not advise the asset being in a significant ascending trend. But rather, the bears could be still in control until solid, high-volume breakouts above immediate reaction lines are registered.
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Source: https://coinpedia.org/bitcoin/bitcoinbtc-price-is-back-above-30000-but-wait-bears-are-still-in-control/