In a recent analysis, Crypto World Analyst sheds light on the ongoing dynamics in the crypto market, mainly focusing on Bitcoin’s recent performance. He pointed out a report suggesting that Bitcoin has completed a bearish rising wedge pattern, experiencing a downturn due to selling pressure from Bitcoin ETFs.
The analysis pointed out that Grayscale, a major crypto investment, recently sold approximately 10,000 Bitcoins worth over $400 million, contributing to the downward movement in Bitcoin’s price. This reduction is attributed to investors moving their funds to other Bitcoin ETFs, seeking lower fees.
Bitcoin Price Analysis
On the technical front, Bitcoin’s price chart has a bearish divergence that indicates a potential reduction in bullish momentum. Bitcoin’s price is likely going down, and now that it has dropped, there’s a chance it might go up a bit in the short term. He said that one should not expect a huge jump, though. It’s because of a small positive sign and the chance for prices to go back up slowly.
The analyst said to monitor key levels like $42,000 to $43,000. Some support exists, but reaching higher prices, like $43,000, might face challenges. It could struggle at these points even if it tries to bounce back up. It’s just something to be aware of as things play out.
The analysis points out key support and resistance levels, with $40,000 identified as a critical support level. A break below this level could signal a potential trend reversal. The report encourages traders to monitor various timeframes, considering both short-term and long-term perspectives.
The analysis extends to Ethereum and other altcoins, noting similar bearish divergences and short-term challenges. Ethereum’s price is expected to face reduced bullish momentum, potentially resulting in a pullback or sideways movement in the coming weeks.