Bitcoin’s price has been struggling to maintain its bullish momentum after a significant drop from the $75K level. However, despite the bearish sentiment in the market, there are indications that a new wave of bullish movement may be on the horizon.
Looking at the daily chart, it is clear that Bitcoin has been trading within a descending channel pattern, forming lower highs and lows. While this pattern is typically seen as bearish, the momentum in the market does not appear excessively bearish. The key $60K support level has consistently held the price, and there is a possibility that Bitcoin may break above the upper boundary of the channel. A breakout above this pattern could signal the start of a new bullish trend, while a drop below it could lead to a sharp decline towards $52K support level.
On the 4-hour chart, Bitcoin has recently bounced off the $60K support level and is now testing a resistance level around $63,500. The Relative Strength Index (RSI) has also crossed above the 50% mark, indicating a return to bullish momentum. If Bitcoin manages to break above $63,500, we could see a rally towards the midline of the channel and possibly new all-time highs.
While many have been trying to pinpoint the cause of Bitcoin’s correction in recent months, the focus has turned to the US market for insights. The Coinbase premium gap, which measures the price difference between Coinbase’s BTC/USD pair and the BTC/USDT pair on Binance, has been a key indicator. The volatility in this premium gap, particularly on the downside, suggests significant selling pressure from US investors, including wealthy individuals and institutions. As long as this trend persists, the chances of a bullish continuation may remain slim.
While the Bitcoin market has faced challenges in recent times, there are signs of a potential bullish resurgence. The technical indicators suggest a possible breakout to the upside, while market analysis points to the impact of US investors on the price action. Traders and investors should closely monitor the key levels mentioned to gauge the direction of the market and position themselves accordingly.
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