Bitcoin bulls are losing strength as they are unable to sustain the rally above the gains. The market dynamics do not appear to be in their favour and as a result, the Bitcoin price is now feared to maintain a steep descending trend, regardless of the interim bullish spell. The latest rebound from levels around $57,000 to above $59,000 had circulated a bullish wave within the markets. However, from a larger perspective, the BTC price remains stuck within a bearish trend and may require more power to initiate a breakout.
During the previous day’s trade, the bulls demonstrated significant strength, which prevented the price from closing below $56,000. The large wick indicated the possibility of a bullish continuation, but the bearish start to the day squashed the likelihood of an ascending trend for a while. Now that the bearish action could prevail for some time, will the BTC price plunge back below $55,000?
But what went wrong? Why is Bitcoin’s (BTC) price falling?
The confidence of the retail traders shakes when the whales display their unwillingness to hold BTC. In a recent update, huge whale movements have been detected, which has raised huge suspicion over the next price action. As per the data from Lookonchain, nearly 4000 BTC has flowed out of Fidelity custody wallets.
The whales have been rotating their assets around the space quite often in recent times, which has raised the volatility of the tokens. While the possibility of a massive dump of countries haunts the rally, the likelihood of them just moving around the assets, causing FUD among retail traders. As a result, the BTC price remains stuck within a range and holds both the possibility of a bullish continuation and a bearish pullback.
During the previous trading day, the BTC price tested one of the crucial price zones around $56,200 and failed to hold, marking the daily lows around $55,600. Although the bulls have pushed the prices higher, the price is likely to drop back below $56,500 shortly. With the growing bearish possibilities, the lower targets have been activated. However, if in case the bulls manage to hold $56,200, the bulls are expected to reclaim their dominance; otherwise, a drop below $52,000 will be imminent.
Therefore, the next few hours are believed to be extremely important for the Bitcoin (BTC) price rally which may set the next path of action for the upcoming weekend.
Source: https://coinpedia.org/price-analysis/bitcoin-stuck-within-a-corrective-wave-another-lower-high-could-be-on-the-horizon/