Is Bitcoin’s 2023 bull rally at an end?
- Bitcoin's big-picture outlook shows a slow-down in the 2023 rally and a potential reversal.
- The developments in the RSI and AO indicators reveal a bearish fate seen in 2021 and hints at an incoming crash.
- Investors need to be careful while bidding at the current levels.
Bitcoin price slows down after an 88% upswing. This development could see result in a bearish takeover followed by steep corrections and new yearly lows.
Read more: Recent Bitcoin price crash triggers whales to scoop BTC at discount
Bitcoin price shows weakness
The three-day chart for Bitcoin price shows a few bearish developments noted as follows:
- A slow but steady decline after forming a local top at $30,968.
- Relative Strength Index (RSI) slipping below the mean level, suggesting a shift in momentum favoring bears.
- Further inspection of RSI from March to June 2023 reveals a similar pattern seen in 2021, consisting of a failed flip of the RSI’s mean line in September 2021, followed by a slip below the 50-line in November 2021.
- Additionally, the Awesome Oscillator (AO) has also slid below the zero line, indicating that the bearish momentum is dominating.
- The last time AO slipped below the zero line after producing a double top was in December 2021, which marked the start of a bear market.
If history were to repeat, the 2023 bull rally could be coming to an end. If that’s the case, BTC could produce a temporary higher low at roughly $23,000, followed by a retest of the $19,000 support floor.
As seen in the chart below, the ideal macro bottom for Bitcoin price could occur anywhere between $13,575 and $11,898.
BTC/USDT 3-day chart
While there might be a short-term rally, investors need to be cautious. The only way this bearish outlook will be invalidated is if Bitcoin price flips the $32,000 resistance barrier into a stable support level. This move will trigger sidelined buyers to step in and could potentially trigger another leg-up for BTC that could retest the $35,260 and $41,273 hurdles.
Also Read: BlackRock Bitcoin ETF application, making a case for SEC approval
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
