Bitcoin Losing Strength: Why Bulls Are Falling Short of Strength Amid Positive Market Sentiments?

The Bitcoin price had soared above $71,000 as the rounds of spot Ethereum ETF circulated within the crypto space. This move appears to have attracted bearish forces, who are now utilising all their resources to restrict the rally below the range. Having said that, have the bears trapped the bulls at the higher range, or is this pullback intended to cause a ‘boomerang’ effect, triggering a fresh upswing to $75,000?

Regardless of the current market trend, the BTC price in the short and long term continues to remain bullish. The TD, which is used to identify the exact trend exhaustion and the potential reversal area, presents a buy signal in the hourly chart. Therefore, this suggests the BTC price is prone to a rebound and may materialise in a short while from now. The short-term rebound usually offers the required base for the token in the long term to maintain a healthy upswing. 

The Bitcoin price rally in the weekly time frame suggests a similar trend and appears to be on its way to re-test the upper resistance of the wedge. 

The weekly chart indicates the price is again ascending back towards the interim highs, which fall around $73,500. The RSI has also undergone a flip from the descending trend, substantiating the bullish claim. In previous cases, when the price broke above the descending parallel channel, it resulted in a strong upswing that marked a new ATH. Therefore, if history repeats itself, then the BTC price may have started its journey towards new highs, somewhere between $80,500 and $81,000 in the next few weeks. 

The bears are trying hard to restrict the levels below $72,500 and hence, after facing multiple rejections, these levels have become very crucial to achieve. Therefore, the Bitcoin price is required to achieve and sustain above the levels this week or before the end of the month to validate the road towards a new ATH above $80,000 before the end of H1 2024.