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Bitcoin’s price action has developed within a bearish expanding channel, also known as a funnel. This pattern is marked by relatively equal highs and a continuous formation of lower lows, highlighting a trend of increasing bearish sentiment. Over recent months, each attempt to break through the all-time high of $73,794 has been met with growing resistance from sellers. This resistance has intensified, driving the price lower and recently breaching a crucial demand level of $53,550.
The evolving price dynamics underscore the challenges faced by buyers in pushing the price higher amidst significant selling pressure. The breach of the $53,550 level reflects a broader trend where supply has consistently outpaced demand, resulting in a sustained downtrend.
Bitcoin Key Levels:
Demand Levels: $53,5500, $46,516.0, $40,515.0
Supply Levels: $63,424.0, $73,794.0, $80,000.0
Indicator Analysis:
The Smoothed Heikin Ashi candles offer a clear indication of resistance faced by buyers near the $73,794 mark. As Bitcoin approaches this resistance zone, the candles consistently shift to a red hue, signaling ongoing bearish pressure. This shift is often accompanied by the Williams Percent Range moving into the overbought region, suggesting buyer exhaustion and a potential for further downward movement. Moreover, recent market activity has tested the lower boundary of the expanding channel. This test has resulted in a long wick on the price chart, signaling a bounce off this boundary and a possible short-term rebound.
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