Bitcoin’s Topside Potential Fades As Bearish Calls To $25,000 Intensify

    • Bitcoin balances at a tipping point as losses to $25,000 beckon.
    • A bearish pennant pattern adds credence to the pessimistic outlook and narrows the chances of recovery.
    • If investors put aside their skepticism and heed the MVRV call to buy BTC, a recoil to $33,000 would be possible in subsequent days.

    Investors are beginning to get accustomed to Bitcoin and the larger cryptocurrency market posting losses on a daily basis. BTC tanked to $24,500 a couple of weeks ago but regained some ground above $30,000.

    However, bears quickly caught up, slowing the uptrend and pushing BTC below $30,000. At the time of writing, the king coin traded at $28,790 while bulls worked around the clock to absorb the building selling pressure and endorse a trend change.

    According to the prevailing technical picture, losses are likely to dominate the next few days with $25,000 in sight, before an upswing commences.

    Bitcoin Prints A Bearish Pennant Pattern

    Over the last couple of weeks, Bitcoin’s price has mainly consolidated in a triangle pattern otherwise referred to as a pennant. As illustrated in the 12-hour chart, a bearish pennant pattern forms in a similar way as a symmetrical triangle pattern, but it distinguishes itself by having precise bullish or bearish biases.

    In line with that, Bitcoin’s price was likely to revisit lower levels toward $25,000. Cementing the sellers’ presence in the market is the negative outlook of the Directional Movement Index (DMI). As long as the –DI stays above the +DI, odds will continue favoring the bears. In addition that, downward momentum is likely to intensify if support at $28,000 crumbles.

    BTC/USD 12-hour Chart

    Bitcoin Topside Potential Fades As Bearish Calls To $25,000 Intensify
    Tradingview chart: BTC/USD

    At the same time, the IOMAP on-chain model from IntoTheBlock shed light on a robust supply barrier running from $28,920 to $29,729. Here, 997,650 addresses have previously scooped up around 674,000 BTC. If broken, Bitcoin’s price might quickly advance to highs around $33,000.

    On the other side of the coin, the lack of solid support areas means that declines to $25,000 could quickly escalate. The only medium reprieve lies between $26,291 and $27,167. Roughly, 75,000 addresses have previously purchased about 163,000 BTC.

    Bitcoin IOMAP Model

    Bitcoin Topside Potential Fades As Bearish Calls To $25,000 Intensify
    IntoTheBlock chart

    On the other hand, BTC might soon tap into fresh momentum for gains past the mentioned hurdles. This bullish notion comes after considering a buy signal from the Market Value to Realized Value (MVRV) metric by Santiment.

    BTC MVRV Ratio

    Bitcoin Topside Potential Fades As Bearish Calls To $25,000 Intensify
    Santiment chart

    Some investors bought as soon as the price plummeted to $25,400 but the buy window was still open due to the -7.65% MVRV ratio. Bitcoin’s price is assumed to be undervalued when the MVRV slides below the mean line.

    John Isige
    John is a cryptocurrency technical analyst, who looks at micro, macro and fundamental factors affecting market trends.

    Latest articles


    Subscribe to our newsletter to get the latest market analysis and news.

    Related articles