Is It Time to Sell Bitcoin? What the Technicals Say and What to Expect from BTC Price Rally
The current price of Bitcoin is once again showing signs of attempting to reach certain levels, leading to expectations of a strong upward trend. In the short term, there has been notable bullish movement during the early trading hours, pushing the price close to $61,000. However, if the price surpasses the upper resistance, there is also a possibility of a pullback. The next few hours will be crucial for the token, as a rise beyond the interim range could trigger a significant increase despite the bearish indicators.
The T.D. sequential indicator, which identifies potential turning points in price trends, is currently bearish, presenting a sell signal on the BTC hourly chart. This indicates the possibility of a short-term pullback, potentially dragging the price back below $59,000 to around $58,700 or $58,900.
Does this mean that the Bitcoin price could prolong its consolidation phase? Are traders skeptical about the upcoming BTC price rally?
Since the entry of institutions into the crypto markets, retail traders, whales, and bulls have maintained a slow trend. Data shows that whales are showing little interest in holding Bitcoin, as addresses holding over 1000 BTC and 10,000 BTC have been steadily declining. This decline commenced after the BTC price dropped from its all-time high of $73,750.
The number of wallets holding large amounts of BTC has dropped from over 2160 to nearly 2000. This substantial drop suggests that these large holders may have entered the ETF space or started taking profits. Despite concerns that miners would suffer significant losses after the recent halving and drop in BTC price, they have remained active, with the hash rate remaining above 550M.
However, the BTC price remains in a bearish trend, struggling to rise beyond the average bands of the channel. The bulls are maintaining support at $57,663, which is crucial for the possibility of a bullish trend. The RSI remains elevated but has failed to rise above average levels since the beginning of the month. With the price now above $60,000, it is essential for the bulls to maintain this level of support.
The Bitcoin price is expected to rise beyond $61,000 as the buying volume slowly increases. However, the low trading volume remains a concern, consolidated below $25 billion. While the bulls maintain dominance, the bears appear to be biding their time.
In conclusion, despite the technical indicators suggesting a potential sell-off, there are still positive signs for a BTC price rally. It would be prudent for traders to remain cautious and closely monitor the market as Bitcoin continues on its volatile journey.
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