The Bitcoin (BTC) market has encountered persistent challenges in maintaining a bullish trend above the $31,000 level. With two retests of this crucial level this year, concerns have risen over the possibility of a double top formation, further exacerbated by the rise of the altcoin market. Additionally, the weekly RSI signals a falling divergence, while the death cross between the 50 and 200 Moving Averages (MAs) adds to the bearish sentiments.
Despite these bearish signals, Bitcoin dominance has managed to hold above 50 percent during the early Asian market on Monday, signaling robust market demand for the leading cryptocurrency.
Popular cryptocurrency analyst, Captain Faibik, known as @CryptoFaibik on Twitter, conducted a detailed Bitcoin chart analysis. According to the analysis, Bitcoin has been consistently closing below the critical support/resistance level of around $31,000 for the past five weeks, signaling a strong bearish momentum in the near future.
The analyst cautions traders to prepare for a potential retest at $25.5k if the $31k hurdle proves insurmountable. He further emphasizes the bearish stance, highlighting the significance of five consecutive weekly closes below the crucial level.
On the other hand, the analyst provides hope for Bitcoin bulls, suggesting that the bearish sentiment could be invalidated if the cryptocurrency successfully clears the resistance at $31,000. In such a scenario, Analyst predicts a potential 30-35 percent rally for Bitcoin in either August or September.
As the market anxiously awaits Bitcoin’s next move, traders should remain vigilant amid the conflicting signals. The battle between the bears and bulls around the $31k level will likely dictate the short-term trajectory of the leading cryptocurrency.
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