Bitcoin (BTC) price action remains unchanged as it trades below the 2021 ATH for the fourth consecutive week. With Grayscale’s ETF outflows slowing down, investors expect a positive outlook for the crypto markets, but the short-term directional bias, at least from a technical perspective, remains bearish for BTC.
Also read: New Bitcoin ETFs now hold 500,000 BTC and GBTC outflows slow
Bitcoin price hovers around the 2021 ATH of $69,138 after a 65% year-to-date returns. The Momentum Reversal Indicator (MRI)’s warning sell signal of a down yellow arrow hovers above the ongoing weekly candlestick. This technical formation suggests that the next up candlestick would flash a red ‘one’ sell signal. This signal, from a theoretical perspective, forecasts a one-to-four down candlesticks.
Therefore, a correction seems all but likely for Bitcoin price considering its current technical outlook. The ideal levels for accumulation include the imbalance, extending from $53,120 to $59,111.
Although it is an unlikely scenario, unusally high selling pressure could trigger an extension of the correction in Bitcoin price to the $45,156 weekly support level.
BTC/USDT 1-week chart
Further reading on a potential Bitcoin price correction:
A strong weekly candlestick close that pushes Bitcoin price to flip $75,000 into a support floor would suggest that the bulls are still in control. This development would invalidate the bearish thesis and kick-start a run-up to the next key psychological level at $80,000.