Bitcoin (BTC) Sinks Below Long-Term Ascending Trendline: Are the bears winning the battle?

Bitcoin is sinking. No matter what the good news is, the crypto market just continues to fall. The US stock market is almost at another all-time high while Bitcoin is in danger of falling back to its previous bull market high. What do the final few days of the year have in store for the $BTC price?

Downtrend or ascending trendline have to give: Which will it be?

Source: TradingView

The $BTC price is traversing towards the convergence of the downtrend (in force since the $126,000 ATH), and the major ascending trendline (which started in October 2023). One of these two lines has to give way, and the price will have reached the convergence point by the weekend. 

Ominously, the price has slipped below the major trendline once again. Is this a foretaste of what is to come, or is the price going to come down further before springboarding up into the final days of the year?

What does need to be taken into account is that if this corrective phase does not go below the last pivot low at $84,480, a higher low would follow the higher high that was recently achieved. 

Beware of fakeouts

Source: TradingView

The daily chart shows how the $BTC price has slipped below the major trendline. That said, there is still the rest of the day to go before this candle closes. It can also be seen that a couple of other candle bodies have indeed closed below the major trendline, but the bulls were still able to bring the price back above the following day.

Saturday is the last possible day that the $BTC price can still continue to respect the up and down trend lines. After this nobody knows in which direction the price will go. There is also the possibility that a fakeout could take place. Market makers will always look to take out any long or short traders before the final definitive move.

Bottoming process is coming to a conclusion

Source: TradingView

The weekly time frame illustrates that the bottoming movement is coming to an end. If one looks left at the last time a bottom was formed, as the $BTC price chopped around in the previous falling wedge, it can be seen that the bottom took seven weeks before the price escaped out of the wedge. The current bottom is in its sixth week.

At the foot of the chart, the Stochastic RSI indicators are shaping to head back to the bottom. However, this can change as long as some decent volume gets under the price over the next few days.

Of course the bears might just send the price plummeting down to the major horizontal support first. This would likely have the desired effect of shaking out any last nervous hands. However, this could just be a flash crash down, and the next major rally could follow this.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.