Bitcoin Price Sees Third Consecutive Bearish Day Amidst Whale Activity

The Bitcoin price has recorded its third consecutive bearish day, failing to hold levels above the local highs at $102,000. This downturn has been accompanied by significant outflows, with nearly $568.8 million leaving the market as approximately 5,870 BTCs were sold during the last trading day.

Whales Accumulate Bitcoin Amidst Market Volatility

Currently, the Bitcoin price is testing support levels close to $93,400, showing no signs of a rebound as buyers remain cautious. The pullback has brought the price close to a pivotal zone, and a breakdown may drag the levels down to $85,000 in the near future. Notably, the token has been following a specific price action pattern within each halving year. After the 2020 halving, the price of BTC plunged by over 35% in January, only to rebound and surge to a new all-time high (ATH) close to $70,000.

Historical Price Action Suggests Temporary Pullback

In contrast, the current price drop is less than 10%, indicating that bulls are still in control. The recent drop has been attributed to various factors, including employment-based news and the US Department of Justice’s clearance to sell over 69,370 BTC worth $6.5 billion seized from Silk Road. However, historical price action suggests that this pullback may be temporary, and the Bitcoin price remains under a bullish influence.

Technical Indicators Point to Further Decline

Technical indicators, such as the Moving Average Convergence Divergence (MACD) lines, are on the verge of a bearish crossover, accompanied by a significant drop in buying pressure. The Relative Strength Index (RSI) is also forming lower highs and lows, indicating a potential decline. As a result, the Bitcoin price appears primed to drop below $90,000 and reach levels close to $88,000 in the next few hours. An extended pullback could drag the price down to $85,000 or the average bands of the channel below $83,000.

Conclusion

In conclusion, the Bitcoin price is experiencing a temporary pullback, driven by various market factors and technical indicators. While the price may drop to $85,000 or lower in the short term, historical price action suggests that this downturn is not the start of a bear market. Instead, the Bitcoin price remains under a bullish influence, with a potential new ATH above $110,000 or $115,000 on the horizon.

Source: Coinpedia.org

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