The trade has stepped into the second month of 2024 with excessive upward pressure. Since the interim rejection at $43,800, the Bitcoin price has been printing red candles, indicating the rise of bearish dominance within the markets. This suggests that the token may have already marked the interim highs and hence the longs may get squeezed for the next couple of days.
So is it the end of Bitcoin’s upward trajectory?
The spot premium rates are considered one of the best indicators to gauge the upcoming trend of the rally. These are nothing but the difference between the current price and the average of the seven future prices. The current spot premium is completely flat, with the rates being neutral across the board.
Considering the above chart, a popular analyst, commonly called Daan Crypto Trades, believes that the price could continue to chop around for longer than expected. Now that the BTC price has been largely trading sideways throughout January, will it continue a similar trade in February? Or else, the BTC price may witness a major price action during the second half of the month.
The BTC price has been facing extreme upward pressure for the past few days, due to which the bulls have no room to thrive. The technicals have also flashed bearish signals, which may raise assumptions of a fresh descending trend.
Regardless of the stochastic RSI fluttering bearish signals, bullish hopes continue to prevail until the BTC price remains above $40,000. The token has been trading along the ascending trend line, which has been acting as a strong support since the beginning of Q4 2023. Even though the price initiates a minor pullback, the support zone between $40,500 and $41,000 may hold the rally and prevent extended bearish action.
Therefore, the Bitcoin (BTC) price continues to flash bullish possibilities while the bears are expected to continue to extract profits for some more time.
Source: https://coinpedia.org/price-analysis/bitcoin-to-chop-around-42500-for-an-extended-period-is-a-bullish-act-underplay/