Bitcoin price action may be set up for a pullback after the digital asset’s price stalled at the $45k price level and currently hovers above $43k support.
Bitcoin could likely incur some bearish momentum in the next few days after the grandfather digital asset’s recent price action exceeded our expectations. $BTC – at presentt – looks as though it may be more interested in a pullback, than a continued ascent, as its price hovers just above the $43k support level.
As we go into the weekend, the largest digital asset by market capitalization, Bitcoin (according to Huobi price charts, streamed via TradingView) is down about 0.60% on the day, and (at time of writing) is trading at the circa-$43,440 price level. This, after having opened the current trading session at $43,674 and rising to establish a – current daily high of $43,763.
This marks a climb of about 39% – in the past 18 days – from a $32,929 bottom to the local price ceiling of $45,825. As previously stated, the $BTC price has been teetering on the brink of collapse for four days, testing the $43k support level.
From what we can tell from the market’s candlesticks, the next few days may be bearish, as the pattern formed over the past four days looks to be a bearish two-methods pattern. The candles formed over the past two days are a clear bearish engulfing pattern, while today’s candle looks – at present – to be a bearish harami pattern when paired with the candle formed over the previous trading day.
If these harbingers of bearish price action hold true, then we may see $BTC prices shed value to the sub-$40k price levels in days to come. If that is the case, then the $39k, $38, and $37k price levels may be the asset’s next stop. A descent to the $36k – $35k levels are not ruled out, as big players may routinely try to shake some weak hands out of the market.
Looking at our indicators, we can say that a pullback is quite likely, though selling pressure remains light in comparison to previously logged purchasing action. The market’s Stochastic has registered a bearish crossover, while it seems to be forming a bearish divergence.
The MACD’s histogram, though looking positive, has turned to the lighter side, indicating that the bulls may truly be exhausted. The divergence between the indicator’s moving averages also seems to be dropping, which tells us that upward volatility may be ready to give the market a brief pause.
The market is in mildly bullish territory, as the Ichimoku Kinko Hyo’s Tenkan line is above Kijun, though still below price action and Kumo. The two lines are pointed slightly upwards, while pointed upwards are running parallel to one another. The indicator’s Chikou span seems to be on the side of the bulls as it has risen above price action, though it hasn’t rallied above Kumo. 1
What we may have in the coming days, is a local pullback, provided price action doesn’t descend below the $34.8k support level. If the market doesn’t make a return to bearish territory, we may be in for – either a period of consolidation or a run to the $47k to latter $49k price levels.