Bitcoin (BTC) Price Analysis: Bullish Rally Losing Steam?
In the upcoming US CPI rates announcement, there is an expectation of lower than anticipated rates, which could potentially push the BTC price above the monthly highs at $64,500. However, despite the bullish outlook, there are indicators suggesting a loss of confidence among market participants and miners.
One significant concern is the plunging volume, which has remained below $30 billion. Additionally, the Bollinger bands are indicating reduced volatility, raising the question of whether BTC price will continue to consolidate within a narrow range near the upper bands of the channel.
Despite recent rejection from upper resistance levels, BTC price remains within a descending parallel channel. Support at $59,900 has provided a strong base, preventing the token from falling to the average band at $58,800. The Relative Strength Index (RSI) is showing signs of a rebound ahead of the CPI rates announcement, potentially leading to a push towards $64,000.
However, a concerning indicator is the Bitcoin hash ribbons turning red, signaling miner capitulation with a bearish crossover. Miner capitulation typically precedes a bottoming out of BTC price, as miners sell off their holdings, leading to increased selling pressure and potential panic among traders.
With the hash ribbons indicating a bearish trend, there is a possibility of a bearish pullback in the BTC price. While a small upswing may occur following the CPI core data release, it is likely that the bullish momentum will not be sustained, resulting in a significant price correction back to previous levels or even lower.