Bitcoin price dipped 4.06% this week as sell signals appear across all time frames and analysts warn of a possible correction.
Bitcoin (BTC) has decreased by 4.06% throughout the week. As the weekly and monthly closing approach in under two days, sell signs manifest across all time frames, indicating a potential depletion of the bullish trend.
Compounding the situation, recognized cryptocurrency analysts indicate a forthcoming correction in Bitcoin price.
Reasons This May Represent Local Peak For Bitcoin
Numerous cryptocurrency specialists and traders have disseminated their pessimistic assessments for the short term, indicating a substantial alteration in general market views.
We have gathered leading expert analyses to understand Bitcoin’s prospective price trajectory comprehensively.
A prominent cryptocurrency analyst, OrderAndFlow, observed an unverified yet possible bearish divergence and bearish swing failure pattern preceding the monthly closure.
The expert stated that there is “nothing to worry about,” although cautioned that investors should monitor tomorrow’s monthly close, as it could determine the continuation of the current trend.
The bearish divergence and swing failure pattern noted following the September 2021 monthly closing suggested a probable crash akin to the current BTC price decline.
The downward closing of the November 2021 monthly candlestick validated the bearish trajectory of Bitcoin’s price, precipitating a severe bear market.
Despite the negative monthly candlestick in May, June will ascertain if a bear market is in progress. OrderAndFlow observed,
“Next month is really where it all lies. If we lock in a red monthly next, then it’s a different story, and will be a much more likely cause for concern.”
Willy Woo, a prominent on-chain analyst and founder of Bitcoin vector, emphasized the negative divergence observed on the weekly chart.
“Dear Mr Bitcoin, you have 2 days 16 hours to rally or your gonna print a bearish divergence on weekly charts and then we will be bored for weeks and weeks.”
The weekly divergence on the weekly timescale indicates a potential correction for Bitcoin’s price. The volume profile suggests a very high volume node at approximately $100,000.
Daily Bitcoin Price Evaluation
The 5.60% decline in Bitcoin’s price from the swing high on May 27 has resulted in the cessation of the uptrend.
The bullish trend, illustrated by the trend line linking the upward highs and lows since April 20, has been violated.
This typically indicates a depletion of bullish momentum and suggests a cooling-off period during which assets are likely to retrace to significant support levels.
Analyst Exitpump tweeted a one-hour Bitcoin price chart indicating an ask-dominated spot order book at 25% depth.
This suggests that investors are not inclined to purchase and instead seek to sell spot BTC at this juncture.
In conclusion, the general Bitcoin price forecast is ambiguous; however, it is pessimistic.
The bearish divergence and swing failure patterns observed on the monthly and weekly timeframes and a breakdown of the uptrend on the daily and ask-dominated spot order book suggest an impending correction for BTC.
Consult This for a long-term forecast of Bitcoin prices from 2025 to 2030.
