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Will BTC Price Regain $28000 Before August End? – Crypto News

Published

3 years ago

August 27, 2023

Dripp

Under the influence of a falling channel pattern, the BTC price may see a minor pullback in the near term.

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After the massive dump on August 17th, the largest cryptocurrency Bitcoin has witnessed high volatility for nearly two weeks. While the downward projection continues, the daily candle shows a long-wick rejection on either side, reflecting uncertainty in bearish momentum. Will this indecisiveness lead to a bullish pullback or it’s a small breather for prolonged correction?

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Bitcoin Daily Chart: Key Points

A bullish breakout from the chart pattern will set an 8% price jump
The Bitcoin fear and greed index at 38% reflects bearish sentiment among market participants
The intraday trading volume in Bitcoin is $6.2 Billion, indicating a 30% loss.

Source- Tradingview

The 4-hour time frame chart shows the ongoing downtrend in a more stable manner wobbling between two parallel walking trendlines. This price behavior reflects the formation of a known bullish reversal pattern called the falling parallel channel.

By the press time, the Bitcoin price traded at $26166 with an intraday gain of 0.32%. This uptick will lead the coin price back to the overhead trendline with a potential bullish breakout. Anyhow, after a massive downfall, the asset price tends to show a minor pullback in order to stabilize the prevailing downtrend.

A 4-hour candle closing above the upper trendline will kickstart this anticipated bullish pullback. The post-breakout rally will push the prices 8% higher and retest the $28500 barrier.

The crypto holders must be cautious at this barrier as with the overall trend still negative, the sellers could recuperate bearish momentum for prolonged correction.

Will BTC Price Fall Back to $25000?

While the possibility of a bullish reversal seems valid, the two trendlines are currently leading to the ongoing downfall. Until the two trend lines are intact, the BTC price may extend the downward march. A potential reversal from this upper trendline will trigger a new bear cycle within the channel and lead the prices back to $25000.

Bollinger Band: The narrowing range on the Bollinger Band indicator shows high volatility in the market.
Relative Strength Index: Contrary to the falling price, the RSI slope shows an evident rise reflecting growing bullish momentum.

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