Bitcoin closed the previous weekly trade below the bull market support band for the first time since early January. This could be the beginning of a fresh bearish wave, as the bulls are expected to remain passive. Further uncertainty over the impending price movement may prevail. However, a bullish rebound could be expected if the BTC price manages to hold firmly above the major support zone.
Is Bitcoin preparing for a massive bull run? Or does the 2022 bear market seem to remain in action, with the bottoms yet to be reached?
The recent pullback dropped the price below the crucial support levels that it had held since the beginning of the year. Presently, it has dropped below its bull market support band (BMSB), which plays a crucial role in determining the future trend. The time coincides with the pre-halving phase, which begins in August–September and includes a drop in SPX.
While some believe the BTC price may have left its pre-halving path, in reality, pre-halving years get both bulls and bears rekt.
After remaining below the 200-day MA levels throughout 2022, the price surged above these levels in the first few weeks of 2023. Unfortunately, the price plunged hard below these levels after the recent drop, dragging the RSI within the oversold range. In the past, whenever the BTC price has dropped below the 200-day MA levels, it has hit its realized price, which is around $20,600 at the moment.
Will BTC’s price begin with a fresh bearish wave now?
To determine the next price action, Bollinger bands play a significant role. The bands, after the recent drop, have witnessed excess expansion. This usually happens in the case of a bullish breakout or bearish breakdown. The price follows a healthy accumulation at the gains or along the newly reached lows for some time.
Therefore, the Bitcoin (BTC) price is believed to maintain a healthy accumulation between $25,800 to $26,200 for a while before triggering the next price action.
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