Bitcoin (BTC) price has been trading sideways for the past few weeks. The biggest cryptocurrency by market cap is currently consolidating below its historical resistance of $30,000. The latest analysis reveals that the bears are gaining momentum.
The crypto markets turned red on Wednesday as the BTC price plummeted 2.74%. The negative price action triggered a market-wide sell-off in the altcoins. The latest price drop resulted in the third consecutive red day for the leading cryptocurrency.
Due to the collapse of Silicon Valley Bank in March 2023, the BTC price started a strong rally. This rally caused the price to break above Rs 31,000. However, it failed to gain any strength above this resistance level and retraced. This also led to a surge in Bitcoin dominance which reached 49%.
Bitcoin dominance has decreased to 47.76% due to the recent pullback. At the time of writing, the Bitcoin price is trading at $26,927. Most altcoins are also showing a negative price action as the investors try to preserve their capital. Yesterday’s drop in the US stocks also appears to be a cause behind this bearish price action.
Technical analysis of BTC price chart reveals the formation of a falling wedge pattern. This is generally a bullish pattern that results in a massive upside in case of upward breakouts. Thereforem, Bitcoin price prediction can become bullish if it breaks out of this pattern.
In this scenario, the bulls may target the $30k-$31k level once again. However, a break below the lower trendline of this pattern will invalidate this price target. In this case, the beares may tank price to $25,000, which is a key technical and psychological level on the chart.
In the meantime, I’ll keep posting my updated BTC analysis in my free Telegram group, which you’re welcome to join.
This post was last modified on May 31, 2023, 17:07 BST 17:07