Ever since the BTC price failed to hold at the higher resistance zone above $70,000, the bears have controlled the rally to a large extent. A significant pullback follows every bounce as the market participants show their distrust over the rally by extracting profits very frequently. This constant clash between the bulls and the bears has raised concerns about whether the markets are displaying fakeouts to trap the bulls, as the major target appears to lie beneath the support zone.
It all started when the price of bitcoin faced a rejection at a new ATH close to $74,000. This caused major turbulence among the buyers, due to which the buying pressure is failing to offer the required base for a strong upswing. Currently, the price has triggered a strong rebound from a ‘key support level’ and hence is expected to remain elevated until it marks the resistance. However, the technicals and the fractals suggest the price is undergoing a fake breakout, which may not be sustained for long.
The above chart suggests the price is continuing with an adjustment as it remains within a rising parallel channel in the weekly chart. However, it failed to surpass the upper resistance of the channel, which pushed the price towards the average bands. The bulls are trying hard to maintain a healthy upswing, but the Bollinger bands have begun to squeeze, which suggests the rising dominance of the bears.
Also, the MACD is closer to displaying a bearish crossover as the buying pressure has waned completely. This indicates the bulls may soon fall short of strength, which may enable the bears to revive a fresh descending trend. The move may pierce through the local support, which is also collided by the average bands of Bollinger and the rising parallel channel. Hence, it will form new lows below $55,000 in the coming days.
Besides, the weekly close is on the horizon, and hence, a major price action is expected irrespective of the direction. If the Bulls manage to defend the support at $55,786, then the bearish narrative could be invalidated. This could further begin with a fresh bullish spell aiming to mark a new ATH for Bitcoin in the coming days.
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