The bear trend gets to BTC finally now, for the first time since past October and the price pulled back about $13,000 from its 2021 high. Yesterday’s red candle is the one sure sign that confirms the trend is turning however, the technical analysis tool used to gauge the trends’ strength confirms that the bears took over the reign and now we will enter a short-term downtrend so let’s keep up with the Bitcoin price news and find out more.
Bitcoin is on an uptrend and according to the data from the past market cycles, things are only warming up. This doesn’t mean however that the higher timeframe trend can’t be up while the short timeframe intraday trends head down or that the price action days and weeks will temporarily turn bearish. That’s exactly what happened a day ago with the cryptocurrency deleting about $13,000 of its price from the high to low with the daily close left behind an extremely bearish candle and reminder that the price will only move up in a straight line.
The recent parabola has been broken which could suggest a new correction is underway and some of the best traders and analysts are now expecting even more downsides before things start turning back up. The Average Directional Index confirmed the bearish price action and the red DMI is moving sharply above the green which is a clear sign that the bears are in control of the crypto’s daily trend once again. The ADX is well below 20 so the trend hasn’t fully taken hold. What’s notable is that this is the first time that the bears reclaimed BTC since October when the FOMO was launched.
The ADX is used to gauge the strength of the underlying trend and the higher timeframes provide dominant signals. The bears won on the daily, but on the weekly timeframes, the same tool shows that the bears don’t have a chance and any downward momentum will be short-lived before the bulls are able to regain control. Corrections are healthy and they confirm resistance as a support and they also reignite the buying interest by reaching attractive price levels.
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