Bitcoin (BTC) Faces Double Top Concerns as Price Weakens and Volatility Looms
Summary:
Bitcoin (BTC) faces the possibility of a "double top" pattern as its price weakens. Analysts predict further downward movement and highlight liquidity conditions supporting bearish arguments. However, there are indicators suggesting a potential shakeout similar to March 2020, as well as a rebound to "fair value" based on the relative strength index (RSI). The upcoming US Consumer Price Index (CPI) release could bring volatility, impacting market expectations ahead of the Federal Reserve's interest rate decision later this month.
Bitcoin (BTC) is starting a crucial week on a weak note as its recent price action resembles a "double top" pattern, raising concerns among analysts. The cryptocurrency struggled to gain momentum after closing below $26,000, and analysts predict further downside potential. However, there may be some positive signs on the horizon. One on-chain metric suggests that Bitcoin is experiencing a major shakeout similar to what happened in March 2020. Additionally, the relative strength index (RSI) is nearing its lowest level since January, which could indicate a potential rebound to "fair value.
Published At
9/11/2023 8:41:22 AM
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