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Bitcoin Fails to Surpass Key Resistance, Analysts Claim Bearish Outlook Holds – Crypto News

Published

2 years ago

October 2, 2024

Dripp

Analyst Peter Brandt recently indicated that despite a temporary uptick in Bitcoin price, the cryptocurrency has not overcome the crucial resistance levels necessary to shift its longer-term bearish trajectory. Brandt’s analysis suggests that for a bullish reversal to occur, Bitcoin must not only breach the $71,000 mark but also set a new all-time high beyond $73,808.

Bitcoin Rally Fails to Crack $71K; Analysts Say Bearish Structure Holds

According to analyst Peter Brandt, the recent rally in Bitcoin price did not alter the cryptocurrency’s entrenched bearish trend. Despite achieving a temporary surge, the price failed to surpass the significant resistance level at $70,602, staying well below the $73,808 mark, which Brandt highlights as necessary for confirming a bullish trend reversal.

In his analysis, Peter Brandt emphasizes that the pattern of lower highs and lower lows, a classic indicator of a bearish trend, remains intact. This structure suggests that without a decisive close above these levels, particularly the $71,000 barrier, the current price movement is part of an ongoing downtrend.

More so, the escalation of the Israel-Iran conflict has added another layer of complexity to the already volatile Bitcoin market. Following a peak of $66,508 on September 28, BTC price experienced a sharp decline, retesting the $60,000 region before stabilizing around $61,400. This drop coincides with increased global instability, prompting investors to shift towards safer assets such as bonds and gold.

The Israel-Iran geopolitical unrest has dampened the immediate prospects for Bitcoin and contributed to increased market caution.

BTC price Technical Indicators Suggest Caution

At press time, the Relative Strength Index (RSI) for BTC on the 24 hour chart hovers around 49.00, indicating a neutral market condition. The RSI line recently dipped from a peak near 60.59, suggesting a slight decrease in buying momentum as suggested by Peter Brandt.

Moreover, charting expert Willy Woo supports Peter Brandt’s view by acknowledging the bearish medium-term structure of Bitcoin. However, Woo remains slightly more optimistic about the gradual shift towards a bullish market. He suggests a possible cooling-off period before any significant bullish attempts materialize.

In addition, at press time, the MACD indicator on the Bitcoin daily chart shows a convergence of the MACD line towards the signal line, suggesting a potential shift in momentum.

BTC/USD 24-hour price chart — TradingView

The histogram, which represents the difference between the MACD line and its signal line, is trending upwards but still in negative territory, indicating that while bearish momentum may be weakening, a bullish crossover for BTC price and a clear upward trend have yet to be confirmed.