Bitcoin Price Rally Broke the Pattern
The Bitcoin price rally is in a crucial phase, where-in a plunge to the lower levels might be quiet possible. Interestingly, the BTC price had tested the CME gap and manifested a strong inclination to smash the current ATH very soon.
However, the scenario appears to be slightly flipped as the price is on the verge of a breakdown. As the H &S pattern is not inverse, the fear of massive plunge haunts. In case the neckline is broken the levels close to $52000 may be fast approaching.
— MMCrypto (@MMCrypto) March 17, 2021
Price Surge May Take Some More Time!
Each time the BTC price experiences a plunge, the next leg up is followed in very soon. However, in the current scenario, the price may take more time to get a strong price boost. As the reasons put up by the CEO of Cryptoquant, the selling pressure is high on most exchanges.
I think $BTC would take some time to get another leg up in terms of demand/supply.
1/ Too many $BTC holdings in USD compare to stablecoin holdings on spot exchanges.
2/ BTC market cap is too big to get another leg up by leveraging stablecoin market cap solely. pic.twitter.com/daXPaKU3U1
— Ki Young Ju 주기영 (@ki_young_ju) March 17, 2021
Also, the market capitalization of Bitcoin which has surpassed $1 trillion is too big to get a notable push with the stablecoin market capitalization. Moreover, there are no significant USD spot inflows recorded and hence a more significant surge in the trading volume is required for the price to flip the bearish divergence.
Collectively, the bitcoin price rally appears to be halted and turn towards the downtrend. However, the BTC price rally spikes up suddenly within no time, as the market sentiments are very bullish and still look forward to smashing the target at $60K