Will Bitcoin (BTC) crash again? Key information predicts what will come next
Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, looks bullish and may experience a significant price drop in the coming hours or days. On October 18, 2024, BTC hinted at a possible price correction when it formed a bearish candlestick pattern at a strong resistance level.
Bitcoin (BTC) technical analysis and upcoming levels
According to expert technical analysis, BTC is currently facing strong resistance at the upper border of a descending channel pattern. Since March 2024, BTC has reached this level more than six times, experiencing notable selling pressure and price declines of more than 20% each time.
However, the formation of a bearish candlestick pattern on the daily time frame indicates a similar decline in the price in the coming days.
In addition to this bearish outlook on the daily time frame, a closer look at the BTC chart on the four-hour time frame shows that the world's largest cryptocurrency is currently finding support at $66,700. Additionally, BTC has been consolidating between $66,700 and $68,000 over the past two trading days.
Based on the recent price progress, if BTC breaks the lower boundary of the consolidation zone and closes a daily candle below $66,500, there is a high probability that the asset may decline by more than 6% to reach the $62,500 level.
Bear sentiment confirmed by chain metrics
BTC's negative outlook is further supported by chain metrics. According to on-chain analytics firm Coinglass, the BTC Long/Short ratio currently stands at 0.968, indicating bearish sentiment among traders. Additionally, the futures open interest decreased by 3.43% in the last 24 hours and 1.85% in the last 24 hours.
This decline in open interest indicates traders' long positions or traders exiting positions due to fear of falling prices.
Combining these metrics on the chain with technical analysis, it appears that the bears are currently dominating the asset and have the potential to cause significant price declines.
Current price momentum
At press time, BTC is trading near $66,920 and has lost more than 1.8% in the last 24 hours. During the same period, the trading volume decreased by 21%, indicating low participation of traders in the current market sentiment.
