As Bitcoin hovers around the pivotal $38,000 mark, the cryptocurrency market is rife with speculation regarding its future path. Despite a noteworthy recovery, Bitcoin ‘s momentum is gradually waning, sparking inquiries about the likelihood of an imminent downturn.
This analysis will scrutinize recent price trends, assess critical support and resistance levels, and explore the factors shaping Bitcoin’s present outlook. Our objective is to discern whether an impending downturn looms or if the digital asset can sustain its upward trajectory.
In our earlier analyses, we noted that Bitcoin‘s price has been nearing the conclusion of its uptrend since November 21 of last year. From its low of $15,600 on November 21, we observed a remarkable surge of 140%, reaching its peak at nearly $38,000 on November 14 of this year.
As the price surged to these levels, momentum slowed, encountering robust resistance. The price exhibited choppy action and oscillated around $35,600. While on an upward trend again, it faces challenges in surpassing the $38,000 mark.
Since September 11, we’ve observed the conclusion of wave 5 within a higher degree five-wave impulse. This led the price to its next resistance zone, which previously served as support from January to May 2022.
If our analysis is accurate, the entire move from last year’s November low marks the initiation of a bull market. Approaching its completion, the onset of the first bull market correction seems imminent, despite lingering bullish sentiment.
Although another attempt to sustain an uptrend might occur until it reaches $40,000, it is likely to be short-lived as a downturn looms. This is corroborated by the daily chart RSI, which entered the overbought zone on October 25 and has been trending downward since.
Furthermore, the price’s upward movement, coupled with a bearish divergence, suggests an impending market reversal. The anticipated correction target is around the $25,000 zone, contingent on where the current increase concludes.
Bitcoin has maintained an upward trajectory for slightly over a year, witnessing a robust 140% recovery. Breaking through substantial resistance levels and displaying a bullish five-wave impulse in its wave structure, it strongly suggests the initiation of the first bull market ascent.
Anticipation now centers on the impending first corrective stage, which seems imminent. Whether this correction unfolds by year-end remains uncertain. However, indications suggest limited upside potential in either scenario.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.