The markets have become more inclined towards the bears, leaving no room for the bulls to sustain their strength. The bitcoin price remains stuck at $26,000, slashing the volatility back to the lower levels, which had jumped slightly following the recent price variation. Now that the bulls appear to be accumulating strength, the possibility of an extended bearish action continues to flutter within the crypto space.
With the recent downfall, bearish speculation has been hovering within the market, expecting the BTC price to reach $20,000 or lower. Amid this, fewer possibilities of a bullish rebound are seen, which may offer some relief.
But will the upswing prevail for long, or is it yet another bull trap set up by the bears?
Bitcoin has formed a massive CME gap ranging from $27,850 to $26,475 during the past weekend while the token was experiencing a freefall. Ever since the beginning of the year 2023, the BTC price has filled every CME gap. Every gap has dragged the price lower, but the latest gap may lift the price above the current consolidation.
However, it is extremely important to analyze whether the prices may sustain after rising above $27,500 or if it could be another short-term bounce.
In the above chart, it can be seen that the daily RSI dropped to the oversold region after maintaining a descending trend since the beginning of 2023. The levels triggered a healthy rebound and are expected to begin a fine recovery soon. Therefore, the BTC price may also rise beyond $27,000 initially and may encounter a fresh bearish trend.
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