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:

1. A slow but steady decline after forming a local top at $30,968.
2. Relative Strength Index (RSI) slipping below the mean level, suggesting a shift in momentum favoring bears. 
3. 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. 
4. Additionally, the Awesome Oscillator (AO) has also slid below the zero line, indicating that the bearish momentum is dominating. 
5. 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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