Bitcoin in a Bear Market? Prices Continue to Fall After Rebounding From $17.5K

After the 70% drop, Bitcoin’s price has failed to show any sign of strength, like in its previous rallies. The price is currently falling slowly after rebounding from $17.5K a few weeks earlier. Mining by Edris, who is technical analyst at The Time[...]

Bitcoin's price still has not shown any signs of strength, even after the 70% crash. The price is currently on a slow decline after a small rebound from $17.5K couple of weeks ago.

Analysis of price and volume data to predict future market trends

Edris tweeted

The Daily Chart,

If the price breaks below the $17.5K level, it will be considered a key resistance. A further drop towards the $15K range and lower levels could therefore be expected in the mid-term. However, a fake breakout and quick reversal is also possible, which could initiate a rally in the short term. The 50-day moving average at around $26K and static resistance levels of $24K and $30K would be critical obstacles even in this case. The probability of a bullish reversal is very low before breaking above the $30K level

Source: TradingView

The 4-Hour chart is a tool that traders use to monitor the price of a security over a given period of time.

On the 4-hour chart, the price is consolidating in the $17K-$20K range, forming a triangle pattern. This could be a reversal or continuation pattern.

A bullish breakout’s targets would be the $24K zone and then the previous bearish flag's area, where it formed earlier.

Source: TradingView

If the price fell to $17.5K following a bearish breakdown, the RSI indicator would show values below 50%, indicating that bears are in control. This indicates that there is a higher probability of a bearish breakout occurring.

On-chain Analysis

Edris, who writes on Twitter

Long-term Bitcoin holders have the option of SOPR.

The massive losses incurred by investors in the last few months following Bitcoin's ruthless downtrend have caused even long-term holders to realize losses. This is typical behavior during the last phase of a bear market, when even long-term holders begin panic selling or "capitulating."

These holders usually have large amounts of Bitcoin because they’ve probably bought their coins at lower prices and have held them for a long time. So, they would release a significant supply into the market, which would trigger the bear market's last crash.

Source: CryptoQuant
CryptoQuant is a platform that allows users to trade crypto assets, track market trends and keep up with the latest news.

When the smart money accumulates these cheap coins, the bottom will form. The long-term holders' SOPR metric shows how much they are profiting or losing daily. This metric is currently trending below 1, which indicates that the long-term holders are experiencing losses, and it suggests that there will be more pain and decline in the short term and a potential bottom in the near future.