The Wall Street ended lower on Monday, ending its significant gains of the preceding week. However, Bitcoin has gained a bit since the fall of the equity markets. But this gain for the BTCUSD could be short-lived. At least, that is what appears to be the case as of now.
Technical indicators that indicate Bitcoin could drop to $3800
- The Bear Flag formation exhibited by BTCUSD on the daily chart could finally be culminating. The traded volume of Bitcoin is pretty low right now. If there is a sudden increase in the volume, Bitcoin could drop to $3,800.
- And this move is going to come pretty soon. BTC has tested the inclined trendline twice and, interestingly, has rejected below the trendline at both times.
- The daily chart also indicates that the immediate short term will be extremely crucial as the Bitcoin will soon retest the trendline. In that case, Bitcoin might drop significantly. After all, this is a dominant Bear market.
Reward halving might play a significant role in the upcoming Bitcoin (BTC/USD) movement
- Apart from the Technicals, the fact that the reward halving is going to occur very soon might play a significant role in the price movement of the BTC. It could be a game-changer as it could bring Bitcoin prices up significantly.
- However, analysts warned that traders should not be jumping into trades in the hope of riding the big wave. The direction the Bitcoin wave would move from hereon is highly unpredictable. Being said that, it seems a downward move seems more plausible than an uptrend.
