Bitcoin (BTC) experienced a 4.06% decline this week, with growing concerns about a potential price correction as bearish signals become apparent. As the weekly and monthly close approaches, analysts point out signs that suggest the bullish trend may be losing momentum.
Crypto analysts like OrderAndFlow have observed unconfirmed bearish divergences and swing failure patterns, marking the upcoming monthly close as a critical event. While he reassures that there is 'nothing to worry about', he emphasizes the importance of the monthly close, suggesting it could significantly affect Bitcoin's trajectory. Historical patterns show that similar indicators in the past have led to substantial downturns.
Willy Woo, a prominent on-chain analyst, echoed these concerns, pointing out the need for Bitcoin to rally in the next couple of days to avoid printing a bearish divergence on weekly charts. He noted, "Dear Mr Bitcoin, you have 2 days 16 hours to rally or you're gonna print a bearish divergence on weekly charts and then we will be bored for weeks and weeks."
The recent drop of 5.6% from Bitcoin's peak on May 27 has caused the breakdown of its previous uptrend. Analysts have observed that the highest volume at specific price points signals investor hesitation to buy, instead showing a preference to sell.
As it stands, Bitcoin's price outlook appears bearish, driven by significant technical indicators and market sentiment. The presence of swing failure patterns on both the monthly and weekly charts, combined with a breakdown in the uptrend and a selling-dominant order book, all hint at the potential for a price correction.
Crypto analysts like OrderAndFlow have observed unconfirmed bearish divergences and swing failure patterns, marking the upcoming monthly close as a critical event. While he reassures that there is 'nothing to worry about', he emphasizes the importance of the monthly close, suggesting it could significantly affect Bitcoin's trajectory. Historical patterns show that similar indicators in the past have led to substantial downturns.
Willy Woo, a prominent on-chain analyst, echoed these concerns, pointing out the need for Bitcoin to rally in the next couple of days to avoid printing a bearish divergence on weekly charts. He noted, "Dear Mr Bitcoin, you have 2 days 16 hours to rally or you're gonna print a bearish divergence on weekly charts and then we will be bored for weeks and weeks."
The recent drop of 5.6% from Bitcoin's peak on May 27 has caused the breakdown of its previous uptrend. Analysts have observed that the highest volume at specific price points signals investor hesitation to buy, instead showing a preference to sell.
As it stands, Bitcoin's price outlook appears bearish, driven by significant technical indicators and market sentiment. The presence of swing failure patterns on both the monthly and weekly charts, combined with a breakdown in the uptrend and a selling-dominant order book, all hint at the potential for a price correction.
