After remaining almost stagnant for nearly a week, the Bitcoin price displayed huge volatility in the past few days by hitting $30,000. While the possibility of a bullish reversal loomed, the bears got back in action, restricting the price below $29,400. If the trend in the short term is considered, then it appears to be a minor pullback, but in the larger perspective, it could be nothing less than a lower high, signifying the growing strength of the bears.
Lower highs are usually formed to trap the bulls at the interim highs, where the price surges slightly to attract them. This is followed by a steep descending trend in the long term, pointing to the possibility of a high probability of testing the lower support in the short term. If the bulls fail to trigger a reversal at the support, the price could tend to drop towards the next support.
Hence, now that the BTC price has been showing signs of a bearish pullback, one of the popular analysts, Altcoin Sherpa, believes the price may reach back to the $27,000’s.
The analyst has listed out some reasons why he believes the bearish pullback could be possible,
- The price has been maintaining a multi-week support level where it hits this consolidation each time
- Further, the price deviates below these support levels, triggering a quick recovery and rising close to 200-day EMA
- Later, the price sparks a healthy upswing after reclaiming the pivotal support levels, which have now turned into resistance
Therefore, to trigger the next bullish wave, it is important for the price to test the lower support, which falls around $27,000. Hence, the current trade set mirrors the previous two price actions which suggests a bearish pullback could be imminent before setting up the next bullish wave.
Source: https://coinpedia.org/price-analysis/this-is-going-to-just-be-a-lower-high-claims-an-analyst-will-bitcoin-btc-plunge-back-to-27000/