Price Analysis
  • Zafar Naik
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    Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

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    Bearish Charts Indicate Bitcoin’s Drop: Are We Heading for $48,500?

    The price of Bitcoin has been struggling lately because the market sentiment isnโ€™t great. Let’s break down what’s happening with BTC and why things look a bit gloomy.

    A Tough Spot for Bitcoin

    If you’ve been watching Bitcoin’s 1-hour chart, you’ve probably noticed that BTC is stuck at $56,700. It’s caught between the 20 day & 50 day moving averages, kind of like being stuck in a traffic jam.

    The price started dropping from $64,000 and found some support at $53,800. But every time it tries to climb back up, it gets pushed down again by the 50-day moving average at $57,000. Even with some support at the $56,000 level, itโ€™s not giving us much hope.

    Rising Wedge Giving Warning

    Right now, the chart shows a rising wedge pattern. This usually isnโ€™t good news. Itโ€™s like BTC is trying to climb a slippery hill, and for the past four hours, all the hourly candles have been dojisโ€”small moves that show the market is unsure. This means even a little bit of bad news could push BTC lower, leading to more drops in price.

    More Bad News

    If we check  the weekly chart, we see another bad sign there – The double top or “M” pattern. This often signals a big reversal after an uptrend, adding fuel to the negative feeling.

    Never Ending Bearish Signs

    The MACD indicator is also showing negative signs. Itโ€™s another clue that the bears are in control. The MACD line tried to cross the signal line, however failed.

    On the other hand, the Fear & Greed Index has also dropped 3 points to 26, showing that fear is increasing in the market compared to yesterday.

    Source: Fear and Greed Index

    BTC Might be Going to Bears

    If the bears keep pushing, Bitcoin’s price could drop all the way down to $48,500. The current patterns and indicators all point to a tough time ahead for BTC.

    Bitcoin’s price is currently struggling. A combination of negative patterns are visible on the chart. Patterns such as the rising wedge and double top, along with negative indicators like the MACD and a decreasing Fear & Greed Index, suggest that sellers are dominating the market. Traders and investors should be cautious, as the market might experience further declines if the negative sentiment persists. However, it can also be an opportunity for some people.

    Read Also: Bitcoin Bloodbath: Gold To Rally 100%, But What About Digital Gold?

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