Cryptocurrency analyst Bitcoin Hypher warns of potential danger as Bitcoin experiences a bounce from recent lows. In a recent video, the analyst discussed the risk of a reversal after hitting a crucial price target.
The analysis suggests that while the recent move led to a 14% surge, signs of caution are seen due to declining trading volumes.
Bitcoin recently dipped below previous lows, successfully executing a liquidity grab with a massive liquidation spike of approximately $25 million, indicating a large number of traders being liquidated on the downside.
The analysis involves studying a higher time frame, specifically the daily chart using logarithmic scaling. The mid-level of a significant support and resistance channel was identified as a critical price target, which has already been reached.
A bearish indication is observed in the declining volume during the recent upward movement. The analyst notes that, despite higher highs in price, the accompanying volume has been decreasing, suggesting waning interest from traders.
The chart analysis includes identifying impulsive waves and corrective moves, indicating a potential completion of the fifth and final wave towards the upside. However, the analyst remains cautious, suggesting a corrective ABC pattern may be forming.
The analysis concludes with a negative note considering the bearish volume indications and the potential completion of an impulsive wave. Traders are advised to monitor specific price levels, such as the recently confirmed weekly level at $41,600.
Here’s What’s Next For Bitcoin Price
He also said to focus on the weekly level at $43,900, implying the possibility of witnessing a swing failure pattern around our previous high, resulting in a rejection towards the downside.
If the price continues to climb, it becomes a resistance zone, particularly around $44,000. At the time of writing, Bitcoin is trading at $43,300 levels.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Coinpedia – https://coinpedia.org/price-analysis/will-bitcoin-price-once-again-dip-below-the-42k-levels-heres-what-next-for-btc-price/
