The Bitcoin price rally has become dull in the past few days as the token remains stuck within a narrow range. This has caused a notable shift away from the star token, as some memecoins are performing exceptionally well, outperforming the major cryptos.
While the BTC price remains stuck below $65,000, the ETH price fails to recover above $3000. This sluggish behaviour of Bitcoin flashes major bearish signals, as the rally is heading towards fresh bottoms.
Having said that, has the bearish flag fluttered over the BTC price rally? Where will the price find its bottom?
Considering the current trading scenario, the BTC price is poised for a 10% to 12% pullback as the rally is poised to hit the major trendline on the daily chart. This trend line is extremely important because each touch of the price at this level provides an opportunity for traders to accumulate some. Mainly because the trend line has been offering a strong base for quite a while and is expected to remain until the end of the bull market.
With the bullish scenario circulating around the BTC price, why is the token believed to slump by over 10%?
The daily chart suggests the price is about to undergo a minor upswing as the token has triggered a bounce from the lower range and may rise until it reaches the upper band of the Gaussian channel.
This may initiate a rejection, which may further transform into a retracement to the lower and crucial support trend line. Here is when the BTC price may find the bottom of the prevailing trend at around $55,000.
Now the question arises: when will the bottoms be reached? Bitcoin usually trades sideways every summer. The real fun may begin in August or September when volatility enters the market.
Considering the current market dynamics, the Bitcoin price shows a huge possibility of going lower in the next few days and weeks as the bulls continue to show weakness regardless of the minor upswings.
Therefore, traders can remain patient until the Bitcoin (BTC) price touches the major trendline, which may open huge opportunities thereafter.
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