Bitcoin (BTC), the world’s largest cryptocurrency by market cap, is showing signs of a potential price decline in the near future. On October 18, 2024, BTC displayed a bearish candlestick pattern at a strong resistance level, hinting at a possible price correction.
Technical analysis experts have identified that BTC is currently facing strong resistance at the upper boundary of a descending channel pattern. This level has been a significant point of selling pressure for BTC since March 2024, with price declines of over 20% following each test of this resistance level.
The formation of a bearish engulfing candlestick pattern on the daily timeframe further supports the possibility of a price decline in the coming days. Additionally, on the four-hour timeframe, BTC is currently finding support at the $66,700 level, consolidating between $66,700 and $68,000 over the past two trading days.
If BTC breaks below the lower boundary of the consolidation zone and closes a daily candle below the $66,500 level, there is a strong likelihood that the asset could decline by over 6% to reach the $62,500 level.
On-chain metrics from Coinglass indicate a bearish sentiment among traders, with BTC’s Long/Short ratio at 0.968. Future open interest has also declined by 3.43% over the last 24 hours and 1.85% over the past 24 hours, suggesting that traders may be liquidating their long positions or exiting their positions due to fear of a price crash.
With a combination of bearish technical analysis and on-chain metrics, it appears that bears are currently in control of BTC and could potentially trigger a significant price decline in the near future.
As of the latest data, BTC is trading near $66,920 with a price decline of over 1.8% in the past 24 hours. Trading volume has also decreased by 21%, indicating reduced participation from traders amidst the prevailing market sentiment.