Bitcoin Bull Run Might Be Coming to an End
The Bitcoin bull run could be nearing its conclusion as concerning chart formations emerge.
Currently, Bitcoin trades at $112,835, marking a significant pullback from its peak of $124,200. Despite jumping over 50% from its April low of $15,463 post-FTX bust, market sentiment suggests the ascension might stop.
On the weekly chart, Bitcoin displays a flagging wedge formation – two upward-converging lines near merging. Historically, this pattern signals a bearish breakout.The price connects higher highs as March last year and lower highs from August of the same period, showing the setup clearly.
Other indicators like the Percentage Price Oscillator, akin to a specialized MACD, show decreasing highs cautiously approaching zero. The Relative Strength Index fell from 87.7 in February 2024 to today’s 56, further suggesting potential adversity.
- Demand for Bitcoin etfs has recently softened.
- Exchange holdings have risen slightly indicating increased selling activity from investors.
This combination suggests the possibility of a significant sell-off pushing Bitcoin towards the 50-week average at $95,000. For investors, caution is advised as historically reliable signs point toward a possible downward correction.
