Bitcoin (BTC) is currently experiencing mounting bearish pressure, just a week after the cryptocurrency attempted to rally toward the $30,000 level, supported by positive regulatory developments. These bearish sentiments arise as crucial technical indicators signal a potential downward trajectory in both the short and medium term.
As per an analysis posted on TradingView on September 5 by TradersWeekly, caution should be observed when assessing Bitcoin’s price. The analysts noted that despite a brief period of stability over the long weekend, BTC price largely remained flat, hovering around the $26,000 mark, a notable area of concern.
The analysis pointed out that after a brief spike above $28,000 last week, Bitcoin’s technicals have begun to turn bearish again. Furthermore, the weekly timeframe also indicates a growing bearish sentiment, with key indicators such as the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Stochastic Oscillator pointing firmly to the downside.
Of particular concern is the MACD, which currently hovers just slightly above the midpoint. TradersWeekly warned that a further slide to zero could spell more trouble for the cryptocurrency, anticipating a further drop below $24,000.
“MACD is just slightly above the midpoint, and if it breaks below zero, it will strongly bolster a bearish case in the medium term. As a result, our stance has not changed since the previous update on Bitcoin. We expect it to continue lower in the short and medium term, sliding to the area around $24,000,” the analyst warned.
No interest in BTC’s current price
Furthermore, the analyst stated that another worrisome sign is the behavior of large investors in the cryptocurrency space. The number of Bitcoin addresses holding 1,000 or more coins dropped below levels seen shortly before last week’s price spike.
In this case, the analysts consider the move a lack of interest in the current price by major players. Such behavior by institutional investors can exert further downward pressure on Bitcoin’s price.
It is worth noting that Bitcoin briefly rallied after a United States appeals court directed the Securities Exchange Commission (SEC) to reconsider its decision not to approve the Grayscale Spot Bitcoin Exchange-Traded Fund (ETF).
However, Bitcoin has since slid into familiar consolidation territory, which has been synonymous with most of the year. Notably, the ETF development is considered a catalyst for Bitcoin to regain new heights, as it is seen as the driver of institutional capital into the asset.
Bitcoin price analysis
In the meantime, the price of Bitcoin continues to hover below the $26,000 mark. By press time, BTC was valued at $25,744 with weekly losses of almost 7%.
At the same time, a Finbold report highlighted a possible Bitcoin trajectory if the crypto hits its all-time highest market cap and would trade at $66,838.
