The Bitcoin price displayed an iconic rally in the past few days that shortened the gap between the current levels and the pivotal resistance. Unfortunately, the bulls failed to hold the rally above the gains that offered the bears an opportunity to shed some gains. Although the prevailing descending trend appears to be a short-lived one, the upcoming action appears to certify a fresh bearish action, which may drag the BTC price to new lows.
Will the BTC price maintain a bearish trend in 2024?
Bitcoin is currently producing lower highs and lows, which suggests a growing strength among the bears. Moreover, the previous peak of over $44,800 has not been tested at least once, substantiating the bearish claim. With the bearish volume reaching a 2-day peak and the volume recording the highest since April, a correction appears to be imminent.
As seen in the chart, the BTC price has dropped below the daily EMA-20 at $42,542 for the first time in the past couple of months, coming out of a multi-month high. With the rise in bear volume, a short-term bearish potential could now be active. However, if the price moves and closes below EMA-20 during the monthly close, the bearish trade may be confirmed.
Furthermore, the RSI has fallen below 50, indicating that the market is no longer on the rise. Despite the bearish clouds hovering over the Bitcoin (BTC) price, the possibility of a bullish reversal in the long term looms. As per a popular analyst, Michael van de Poppe, the BTC price is poised to be capped to the upside with the spot ETF approval news.
However, the analyst believes the price may peak at $48,000 to $52,000 and later chop around a bit and mark a new ATH in late 2024.