The markets are experiencing acute selling pressure as global factors have been heavily impacting the cryptos as well as the traditional markets. This may have been the vital reason for the downfall, as Bitcoin prices continue to face extreme bearish action with fewer chances of a rebound.
The price closed the previous day on a bearish note and opened the current trading day below the levels, suggesting the bears are still in control. This trade set-up does not appear to be in favour of the bulls and hence more bearish action is expected in the coming days.
With just 3 days left for the Bitcoin halving, the markets are crashing hard. While the traders assume it to be just a minor pullback, the markets are preparing to display a diverse price action being extremely volatile at the moment.
The major reason to be bearish on Bitcoin is that the token has formed a double-bottom pattern below the current levels, along with a lot of liquidity, which is required for the whales to execute huge orders.
Therefore, it appears to be more likely that the markets could go down as there are some fair value gaps below the current levels, which are usually filled.
Besides, if the BTC price movement is closely looked at, then an impulse wave 12345 was completed and the token is within a corrective phase in the short term. Hence, it could complete this phase before going higher to an all-time high. In the first few days of March, the BTC price soared heavily from $52,000 to $64,000 with less involvement from the bears, indicating a fair value gap.
This happens when an imbalance is created with unequal buying and selling traders. Hence, there are more chances of the price dropping back to the region to fill the gap.
The BTC price has been constantly forming lows within the range of $61,000 and $62,500 for the past few days, which suggests the bulls are falling short of strength. Therefore, the bears are expected to trigger a huge pullback, if the price falls below the bearish range and fills the gap.
This may cause the price to trigger a 20% drop and reach levels close to $52,000. Hence, the traders are required to keep a close look over the Bitcoin (BTC) price for the next 48 hours as a major price action is expected before the Bitcoin halving.
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