- With the decline experienced on Sunday, the week begins with a red candle for Bitcoin, as the BTC price struggles to absorb the overhead supply wave.
- Nevertheless, any positive news could amplify the bullish trend momentum and lead to a sharp price spike.
- Alongside the bull flag movement, overall market sentiment anticipates another bullish rally in the BTC price.
Bitcoin’s price managed to surpass $38,000 but later faced selling pressure: Will the price continue the downward trend? Current indicators!
Analysis of Bitcoin Daily Price Chart
With the decline experienced on Sunday, the week begins with a red candle for Bitcoin, as the BTC price struggles to absorb the overhead supply wave. Sellers, facing another rejection at the $38,000 barrier, remain strong, pushing Bitcoin down by 0.92% on Sunday.
As the bearish momentum persists, as of the time of writing, the BTC price is recording a 0.29% decrease but forming a long wick candle. Overall, the weekend signals a bull failure and indicates another bear cycle within the flag pattern.
With good news, however, buyers managed to sustain the recovery rally, forming the sixth consecutive green candle on the weekly chart. Marking a growth of 37.92%, the BTC price is striving to catch up with the November rally. The bull recovery aligns with positive sentiments in Bitcoin price predictions, signaling further signs of recovery.
Currently, the BTC price is trading at $37,356, showing a 0.29% intraday pullback. Nevertheless, any positive news could amplify the bullish trend momentum and lead to a sharp price spike.
Technical Indicators:
- EMA: A positive trend in the 50D EMA and 200D EMA indicates significant growth. Furthermore, the bullish gap between the two average lines after the golden cross suggests a strong upward trend.
- MACD Indicator: With a minimal bear gap between the MACD and signal lines, the downtrend movement may soon come to an end with a crossover.
Will BTC Price Enter a New Uptrend Rally?
Alongside the bull flag movement, overall market sentiment anticipates another bullish rally in the BTC price. Therefore, there is a possibility of an early reversal above the ongoing pullback stage. Additionally, the weekly trend, reflecting a strong bullish wave in motion, increases the likelihood of a rally.
Hence, with positive sentiments surrounding the largest cryptocurrency, the BTC price could rise by up to 12% and reach $42,000. On the other hand, the ongoing pullback may test the lower support trend line around $36,000.
