Momental Shift Seen From Bitcoin to Memecoins; A Pullback to $55,000 Appears Imminent Before a Breakout to $75,000

The post Momental Shift Seen From Bitcoin to Memecoins; A Pullback to $55,000 Appears Imminent Before a Breakout to $75,000 appeared first on Coinpedia Fintech News

In a larger perspective, the Bitcoin price remains stuck in a steep bearish trend; however, close observation shows that the token is undergoing an extreme squeeze, which may result in a breakout. The bulls and bears are grinding the price to a large extent as the volume is slowly slumping, indicating a massive drop in trading activity. Therefore, the trade dynamics seem to have shifted slightly in favour of bears and hence a drop below $60,000 is programmed. 

Ever since the price began to trade within a close region between $64,300 and $59,500, the traders’s interest appears to have dropped over the rally. Trading activity is the number of trades processed per day, regardless of whether it is a buy, sell, or swap trade. The rise in levels indicates higher levels of trading activity, which could increase the volatility of the token. However, trading activity has dropped heavily since the beginning of the month. 

Alongside, the whales also appear to have taken a break, as they also remain largely silent, performing fewer transactions. This may be a bearish indicator for the BTC price rally, as a drop in retail investment and whale activity may cause the BTC price to remain sluggish for a while, which may be followed by a bearish breakout. This could be a trap set by the whales, as they are displaying disinterest in trading BTC, which may trigger a ’ sell’ signal among the retailers. Once the Bitcoin price marks fresh bottoms, these whales may quickly accumulate in no time. 

On the other hand, the volume does not appear to be in favour of the bulls, as they continue to drop as the price maintains a descending consolidation. Besides, the daily RSI continues to trade below the average band, which suggests a drop in the strength of the rally. The current trade set displays that the bears are trying to exert enough pressure over the rally, which may create acute compression. However, extended compression results in a breakout, depending on the volume induced. 

Therefore, the bearish scenario remains intact as the Bitcoin (BTC) price appears to be primed to mark fresh lows close to $55,000 before initiating a fresh rally to $75,000.