Upon analyzing the long-term BTC/USD chart, it is evident that Bitcoin’s price is facing a crucial juncture. The chart reveals two distinct channels that Bitcoin has been oscillating within. These channels include a bullish channel that originated in 2023 amidst Bitcoin ETF approval rumors and a bearish channel that emerged in March 2024 after the peak of the Bitcoin ETF approval effect. The question arises: which path has the price taken?
Signs of Bearish Momentum
Recent technical analysis of the BTC/USD chart points towards a more bearish outlook. Despite sporadic attempts to return to the bullish channel since 9 August, the price lacks continuity in this direction. Furthermore, there appears to be a magnetic pull towards the median line of the descending channel, indicating a strong bearish sentiment. The price’s advancement on 23 August was met with resistance at the $65k psychological level, further solidifying the bearish narrative.
The decline in BTC/USD in late August was exacerbated by Binance’s decision to freeze accounts associated with Palestinian military groups. This move tarnished Bitcoin’s reputation as an anonymous and decentralized currency, adding to the negative sentiment surrounding the cryptocurrency. Consequently, the stage is set for a bearish autumn, with potentially more weakness in store for buyers on the BTC/USD chart. Analysts believe that a push towards the $50k level may be on the horizon by the end of the year.
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This article reflects the opinions of the entities operating under the FXOpen brand and should not be interpreted as an offer, solicitation, or recommendation for specific products or services. It is crucial to exercise caution and conduct thorough research before making any financial decisions based on the information provided.
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