Bitcoin comes closer to dangerous threshold that keeps it away from entering bear market zone
According to the cryptocurrency’s daily chart, Bitcoin may be targeting another retest of a key price level that prevents digital gold from entering another bear cycle, which looks like the next logical target as the first cryptocurrency crosses $25,000. Failed to get a foothold. ,
Bitcoin has been moving in the ascending wedge for more than a month after dropping below $20,000 back in June. Since then, the first cryptocurrency gained more than 25% to its value with spikes to a 30% price increase.
Unfortunately, there was one pattern that kept the entire market on alert, which is a declining volume profile and suggests that traders and investors have no support behind the current trend. At some point, it could end with downward volatility when the market again faces strong selling pressure.
The exact point of the reversal would be a drop below the lower border of the wedge at approximately $23,400. Luckily, the threshold correlates with the important support level of the 50-day moving average that usually acts like a guideline for trending assets.
For now, there is nothing left but to wait and watch this week’s events. Aside from the above negative factors surrounding bitcoin, we are not seeing an increase in institutional inflows that usually acted as fuel for the rally of the first cryptocurrency.
On the bright side, the short-term rally on the cryptocurrency market has shown that the sentiment around investors remains positive despite the most recent plunge to $17,000 that caused the return of panic and desperation to the market.
