Bitcoin shows the possibility of a continued bearish trend in the short term and is expected to test levels below $25,000 soon
Amid bearish speculation, the likelihood of sustaining a sharp rise continues to send bullish signals for cryptocurrencies
After the recent surge, Bitcoin bears are resuming their aggressive stance, aiming to keep the price confined to a tight range. The recent rejection shows that the probability of a severe bearish downturn has increased as the selling volume gradually increases, suggesting an impending negative trend for the cryptocurrency. However, the bulls seem to be gathering momentum, promising a strong recovery in the near future.
The current study is based on a long-term MACD crossover. The crossover in the monthly chart took place a few months ago, which suggests that the coin has the potential to spark a healthy rally in the coming days. The monthly MACD has formed nearly 3 bullish crossovers since 2014. Interestingly, in all cases, the 0.786 FIB level was reached either before or after. Therefore, a similar trend is expected to repeat itself currently, which could push the price to new highs.
The recent decline has brought the price close to testing the symmetrical support level that held twice previously, namely in June and May 2023. The current trading setup appears to be similar to the bullish crossover in December 2015, which took 6 months to reach the 0.786 FIB level. There is a chance that this time frame will be shortened at this stage, perhaps as little as 4 months. Therefore, based on the historical MACD bullish crossover, the Bitcoin (BTC) price is expected to reach $50,000 by the end of the year.
Despite the ongoing bearish trend, the overall long-term outlook for Bitcoin remains positive. Therefore, it becomes important to closely watch the closing price for the month as it could significantly influence the future direction of Bitcoin’s price.
