Key Points
- Bitcoin’s high timeframe (HTF) remains bullish, but current retracement could go deeper.
- Despite temporary ETF inflows boosting optimism, Bitcoin’s market structure is bearish.
Bitcoin’s [BTC] market outlook remains high timeframe (HTF) bullish, despite the potential for a deeper retracement.
Earlier this week, Bitcoin turned bearish on lower timeframe price charts after reaching a high of $65.5k. The $63.3k support level succumbed to selling pressure and was flipped to resistance.
Declining Accumulation and Bearish Outlook
Reports suggest a decline in Bitcoin accumulation, which could lead to further depreciation due to a lack of demand. Despite promising inflows, Bitcoin’s outlook remains bearish.
The cryptocurrency was previously trading within a range with its lows at $59.7k. However, this level was breached on the 1st of May, and the $65k region was retested as resistance, indicating a bearish market structure.
The Relative Strength Index (RSI) on the daily timeframe also fell below neutral 50, indicating bearish momentum. On the other hand, the On-Balance Volume (OBV) jumped above a local resistance level and continued to hold it at the time of writing.
Future Predictions
It’s speculated that Bitcoin could slump toward the $55k low or even lower in the coming weeks. Over the past two months, selling pressure has been intense, and the liquidity to the south could potentially pull prices lower.
Technical analysis suggests a bearish bias. After a strong trend, prices often need time to consolidate. By breaking below the range low at $59.7k, BTC hinted that the consolidation phase was not yet upon us and that the downtrend persisted.
The liquidity pockets at $56k and $51.5k are the next magnetic zones for Bitcoin. To the north, the $68.5k-$70k region was an interesting place for a bearish reversal. Considering the technical factors, a move southward seems more likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
