Bitcoin’s price action is flashing warning signs, showing similarities to a bearish triple top pattern. This pattern hints at a possible decline, especially when viewed in the context of gold.
According to Peter Schiff, Founder of SchiffSovereign, Bitcoin is likely to test the upward trend line near $42,000, though this level might not hold. A deeper correction to the longer-term support levels, between $15,000 and $20,000, seems a more likely trend.
This looks like a triple top to me. The chart is even worse if you price #Bitcoin in #gold. At a minimum, Bitcoin is headed to the upward trend line at about $42K, but I doubt it will hold. A retest of longer-term support at $15K–$20K is more likely. Look out below. @saylor pic.twitter.com/d83NRh4Rx5
— Peter Schiff (@PeterSchiff) September 16, 2024
Resistance and Support Levels: What to Watch
Bitcoin is encountering significant resistance near the 8646.87% level. This price point marks previous highs where the cryptocurrency faced multiple rejections. Consequently, the market has shifted into a downtrend. This resistance zone is crucial for predicting whether Bitcoin can regain upward momentum or continue its descent.
On the other hand, the price of Bitcoin is now approaching a crucial support level of approximately 7802.86%. This horizontal support has withstood previous tests and may likely be instrumental in shaping Bitcoin’s short term movements. If Bitcoin is unable to hold this support level, it may experience a further drop.
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Additionally, there’s a long-term ascending support trendline extending from 2019. Should the downward trend persist, this line could serve as a major support zone, potentially around 6000%-7000% by 2025. This trendline has weathered previous corrections, suggesting it might offer significant support in the future.
Trend Analysis and Market Dynamics
The current trend indicates a bearish correction, marked by lower highs and lower lows. Bitcoin has struggled to surpass previous highs, leading to a downward trend. The area near 7800% could be a pivotal point. A rebound from this level might propel Bitcoin back towards the 8646.87% resistance. However, a break below could signal a more profound correction toward the ascending support line.
As per Coinglass data, Bitcoin’s derivatives market shows notable activity. Trading volumes have surged by 134.50%, reaching $55.50 billion. Options volume increased by 125.07% to $999.17 million.
Conversely, open interest saw a slight decline of 3.57%, now at $30.68 billion. The options open interest rose marginally by 0.93% to $19.91 billion. Notably, Binance’s BTC/USDT long/short ratio stands at 1.7732, while OKX reports 1.54. Top traders on Binance exhibit a long/short ratio of 1.9369 in accounts and 0.9882 in positions.
BTC/USD 1-day price chart, Source: Trading view
At press time, Bitcoin’s live price is $58,172.17, reflecting a 24-hour decline of 2.91%. The 1-day RSI reads 46.69, indicating a neutral market stance. Meanwhile, the MACD trading above the signal line suggests a short-term bearish trend.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
