It looks like we might be seeing a double top formation, and with lower lows and reduced trading volumes, the positive momentum is running out. The yellow line at the top represents my sell line and is based on a long-term trend dating back to 2015. This line accurately predicted the recent all-time high (ATH) within $50. Although Bitcoin can break through this line, it often doesn’t hold for long.
If the price does break through, the next ATH could be approximately 113700 USD. However, that could mean only small returns with the risk of a pullback to $40k. I’m a BTC bull, but you need to consider having more liquidity during the correction.
The news surrounding Bitcoin is very positive, yet it isn't reacting with enough momentum to reach the values suggested by bullish analysts. Many retail investors are currently focused on paying for living expenses rather than investing. In my opinion, the bull cycle may be nearing its end. The recent head and shoulders pattern that broke to the downside is concerning, although it was somewhat saved by institutions buying more.
This trend could continue, but it's important to note that miners are selling, which is another indicator of a market top, and the Net Unrealized Profit/Loss (NUPL) is high.
If the price does break through, the next ATH could be approximately 113700 USD. However, that could mean only small returns with the risk of a pullback to $40k. I’m a BTC bull, but you need to consider having more liquidity during the correction.
The news surrounding Bitcoin is very positive, yet it isn't reacting with enough momentum to reach the values suggested by bullish analysts. Many retail investors are currently focused on paying for living expenses rather than investing. In my opinion, the bull cycle may be nearing its end. The recent head and shoulders pattern that broke to the downside is concerning, although it was somewhat saved by institutions buying more.
This trend could continue, but it's important to note that miners are selling, which is another indicator of a market top, and the Net Unrealized Profit/Loss (NUPL) is high.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.