Bitcoin (BTC), Price Forming a Super-Bearish Pattern But There’s a Catch

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The price of Bitcoin (BTC), has remained stable horizontally throughout the year, with no notable volatility. Despite the fact that things are now quiet in the cryptocurrency market, the repercussions from the failure of FTX continue to be felt across the entire sector.
Will Bitcoin (BTC), Price Drop?
A crypto trading analyst who goes by Rekt Capital on Twitter noted that a Bearish Engulfing candlestick was being formed on Bitcoin’s annual chart.

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To confirm the BE formation, however, BTC must conduct a yearly close under $14k to validate it. The bearish candlestick cannot then be established before that point.

#BTC is creating a Bearish Engulfing candlestick structure on the Yearly chart
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To confirm that this BE formation is valid, $BTC must perform a Yearly Close below $14k (black).
Until then, the bearish candlestick is not confirmed#Crypto #Bitcoin pic.twitter.com/uZYBkcw3Yz
— Rekt Capital (@rektcapital) December 31, 2022
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Another important development is that extensive research into the netflow of crypto exchanges and historical indicators has revealed a number prominent hypotheses. The data shows that the netflow will eventually become positive as it moves closer to zero.
This means that there are fewer buyers and more sellers. It is possible that, at the same moment it turns positive, there will be a local peak followed by an increase of the selling pressure on future markets. This could lead to a continuation or loss of support.

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The Bitcoin (BTC), as of now, is being traded at $16,592 According to CoinMarketCap, this represents an increase in Bitcoin (BTC), of 0.39%, compared to a decrease of 1.54% during the week.
Also read: Top 10 DeFi Loan Platforms in 2023

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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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