• 21 November, 2024
Markets News

Bitcoin’s Future Uncertain as Analysts Debate Bearish Market Structure

Bitcoin’s Future Uncertain as Analysts Debate Bearish Market Structure

Despite a mix of bullish and bearish sentiment in the market, Bitcoin (BTC) continues to face a challenging environment as traders closely monitor key support levels. The current market scenario has led to varied predictions about Bitcoin’s future trajectory. Notably, some traders anticipate new all-time highs (ATHs) by the end of the year, while others remain cautious about the ongoing bearish market structure.

Theo Trader, a prominent analyst with 96K followers, highlights that Bitcoin remains entrenched in a bearish market structure. His analysis, focusing on the BTC/USDT pair on Binance’s 1-day chart, identifies a potential Head and Shoulders pattern, a classic signal of an impending trend reversal. 

This pattern, characterized by a peak near $70,000, followed by a higher peak around $73,777, and a subsequent lower peak near $66,000, suggests that Bitcoin may face further downward pressure. Trading around the $60,000 level at present, Bitcoin is approaching critical support between $55,000 and $60,000. Theo Trader emphasizes that a clear sign of reversal is needed within this range to indicate any potential bullish momentum. If this support fails, a drop toward the $52,000 level and possibly lower levels, such as $45,000-$40,000, could materialize.

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In contrast to the technical bearish outlook, on-chain data reveals a different perspective. According to Ki Young Ju, Founder & CEO of CryptoQuant, most Bitcoin on-chain cyclical indicators have shifted to a bullish stance. These indicators, previously near the borderline between bullish and bearish sentiment, now signal a potential bull market. 

The CryptoQuant Bitcoin Bull-Bear Market Cycle Indicator, which tracks distinct market phases, shows Bitcoin transitioning out of a brief dip into the “Bear” zone around mid-July, when prices fell below $55,000. However, the recent shift back into the “Bull” zone, where prices range between $55,000 and $65,000, indicates a steady upward trend, contrasting with the bearish market structure observed in technical charts.

At the time of this report, Bitcoin is priced at $60,843.52, reflecting a modest 0.27% increase over the past 24 hours, but a 1.34% decline over the last week. These mixed signals highlight the ongoing tension between bullish and bearish forces in the market.

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