Bitcoin failed to break the $66,000 resistance level, even after completing a bullish double-bottom pattern. This shows the strong bearish sentiment in the market, despite this typically being a bullish time for BTC. The largest cryptocurrency remains stuck in a downward parallel channel, signaling it may stay within a tight range.
Let’s take a closer look at what’s happening in the market.
The double-bottom pattern is generally a bullish signal, indicating a possible trend reversal. Since March, Bitcoin has been moving within a downward channel, and many believed the recent dip marked the bottom. However, after BTC was rejected at $66,000 on September 29, it fell again.
While another double bottom is forming around $60,000, it doesn’t seem likely this will lead to a breakout. Market sentiment remains bearish, with the Fear and Greed Index at 39 points today. Bitcoin briefly found support at $60,600 but is still struggling to rise.
Bitcoin is currently trading at $60,975, with resistance just above this level. On the hourly chart, the 20-period moving average is acting as resistance. On the four-hour chart, the 200-period moving average is also blocking Bitcoin’s attempt to move higher.
The long/short ratio further confirms the bearish tone in the market, with the ratio at 0.98%, showing more traders are betting on short positions than long ones.
Despite the bearish outlook, some indicators suggest new buyers could be stepping in. The MACD histogram is turning green, signaling potential momentum, and the RSI has risen to 44.32, hinting at some buying interest.
In the past 24 hours, 65,095 traders have been liquidated, with over $182 million in trades disappearing. Data from the liquidity chart suggests a possible price spike due to the liquidity present in the market, and we could see a short-term move up in the coming hours.
The market seems stuck in a state of confusion. While some signs point to a price rise, Bitcoin faces strong resistance from moving averages and key resistance zones. The next few hours will be critical for determining Bitcoin’s direction, and traders should watch the market closely before making any decisions.
Will Bitcoin’s downward spiral continue, or will a surprise rally turn the tide?
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