The Bitcoin chart has been bearish for a few months now. Investors everywhere are in panic mode as Bitcoin persists below the 200 EMA. Currently, the Bitcoin price is $29336.
It is a losing battle for the bulls as bears exert more pressure on this asset. Despite this downward pressure, Bitcoin adoption continues to be on the rise. How will Bitcoin fare in the coming days and months?
Bitcoin Bearish Case
Consulting the charts, it looks like Bitcoin is going to be posting new lows soon. The daily Bitcoin chart is showing a bearish pennant forming. Basically, a bearish pennant is a technical analysis trading pattern. It indicates that the downward price trend is likely to continue.
The worrying factor here is that if Bitcoin breaks below $28913, then the next strongest support is at $17533, and after that $12,385.
Bitcoin Bullish Case
Simply put, there is little chance of a bullish move from Bitcoin. However, if it does happen, it will be because $28913 is a strong zone of support that has been tested twice before on a macro scale. Apart from this, Bitcoin has a lot of bullish fundamentals around it. Many countries and companies continue to look into this asset and have plans of adopting it in the future. The latest of these developments is the Brazilian Stock exchange, B3, adding Bitcoin futures.
Bitcoin fundamentals are not really a strong indicator for short-term price movements. The technical analysis predicts a blood bath soon for Bitcoin, and the entire crypto (because of Bitcoin’s dominance). However, one or more years from now, Bitcoin should be back to all-time highs if not higher. When Bitcoin started actively trading years ago, concentrating on the short-term charts would have driven you to sell out early because of volatility. However, fundamentals have always superseded technicals.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.