Bitcoin price action is showing 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 will likely test the uptrend line around $42,000, although this level may not hold. A deeper correction to long-term support levels, between $15,000 and $20,000, appears to be the more likely trend.
I think it’s a triple top. The graph gets even worse if you value #Bitcoin in #gold. At a minimum, Bitcoin is heading towards the uptrend line at around $42k, but I doubt it will hold. A retest of long-term support at $15-20k is more likely. Take a look below. @saylor pic.twitter.com/d83NRh4Rx5
— Peter Schiff (@PeterSchiff) September 16, 2024
Resistance and support levels: what to watch for
Bitcoin is facing significant resistance near the 8646.87% level. This price marks previous highs where the cryptocurrency faced multiple rejections. As a result, the market entered a downward trend. This resistance zone is critical in predicting whether Bitcoin will be able to regain upward momentum or continue its decline.
On the other hand, Bitcoin price is now approaching the crucial support level of approximately 7802.86%. This horizontal support has withstood previous tests and could likely play an important role in shaping Bitcoin’s near-term moves. If Bitcoin fails to hold this support level, it could experience further declines.
Read also: Bitcoin price must double to increase miners’ income, says PlanB
Additionally, there is a long-term uptrend line of support extending back to 2019. If the downtrend continues, this line could serve as a major support zone, potentially around 6000%-7000% by 2025. This trendline has withstood previous corrections, suggesting it could offer significant support in the future.
Trend analysis and market dynamics
The current trend points to a bearish correction marked by lower highs and lower lows. Bitcoin has struggled to surpass previous highs, resulting in a downward trend. The area around 7800% may be the turning point. A bounce from this level could push Bitcoin back towards the 8646.87% resistance. However, a break below could signal a deeper correction to the rising support line.
According to Coinglass, the Bitcoin derivatives market is showing significant activity. Trading volumes increased by 134.50%, reaching $55.50 billion. Options volume increased by 125.07% to $999.17 million.
Conversely, open interest fell slightly by 3.57% to now stand at $30.68 billion. Options open interest rose marginally by 0.93% to $19.91 billion. Notably, Binance’s BTC/USDT long/short ratio is 1.7732, while OKX’s is 1.54. Top traders on Binance show a long/short ratio of 1.9369 on accounts and 0.9882 on positions.
At the time of publication, Bitcoin’s real price is $58,172.17, reflecting a 24-hour decline of 2.91%. The one-day RSI is 46.69, indicating a neutral position in the market. Meanwhile, MACD trading above the signal line suggests a short-term bearish trend.
Disclaimer: The information provided 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 damages incurred as a result of the use of content, products or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
