Bitcoin’s price faced rejection at $70,000 and dropped to $68,100 within hours, leading to speculation about the end of its recovery rally or if the bull run will continue to push it above $73,000 by the end of the week. This sudden pullback comes after a month-long correction phase, with the price dropping by 24% in just three weeks and forming a high rejection candle.
The BTC price trend in the 4-hour chart shows a rapid reversal from a low of $54,400 to hitting the $70,000 ceiling, followed by a 2% pullback and breaking the $68,000 support level. A rising wedge pattern with two rising trendlines is visible, indicating a potential bearish continuation as a second red candle forms. The RSI line also shows a double top reversal from the overbought boundary, supporting the bearish scenario.
Despite the recent pullback, Bitcoin derivatives hold a bullish viewpoint, with open interest reaching $20.54 billion, a 6.18% increase in the last 24 hours. However, the Taker Buy-Sell Ratio has turned bearish, with a 0.57 sell side. Liquidations of long positions in Bitcoin totaling $26.74 million have occurred in the last four hours, with the crypto market experiencing a total loss of $53.23 million in long liquidations.
A rounding bottom reversal forming in the 4-hour chart suggests a potential roadmap for the Bitcoin price trend, with the recent correction being a minor drop within it. Despite an intraday drop of 1.04%, there are warnings of further correction ahead. The support trendline of the rising wedge pattern could be the next reversal spot for Bitcoin, with Fibonacci levels suggesting a potential peak of $71,665 by the end of the week.
In conclusion, the recent pullback in Bitcoin’s price has raised concerns about the sustainability of its recovery rally, but there are still indications of a bullish continuation. The formation of a rounding bottom reversal and the presence of strong trendlines suggest that the bulls may regain control and push the price back above $70,000. With derivatives signaling a bullish outlook despite recent liquidations, it remains to be seen whether Bitcoin will surpass $70,000 and continue its upward trajectory by the end of the week.
