The ongoing Bitcoin Bull Run could be over as it flashes numerous bearish chart patterns into its weekly charts.
summary
- Bitcoin Bull Run could end up as a dangerous pattern form.
- We formed a falling wedge pattern on our weekly charts.
- Demand for Spot Bitcoin ETFs has declined over the past few days.
Bitcoin (BTC) prices were trading today at a record high of $124,200 to $112,835. It jumped over 50% from the lowest level in April this year.
The weekly chart suggests that Bitcoin Bull runs could end
The weekly chart below shows that BTC prices have been running for a long time over the past few years. After the FTX explosion, it bottomed out at $15,463 in late 2022, peaking at an all-time high of $124,200.
A closer look shows that Bitcoin prices slowly formed a very bearish rising wedge chart pattern on their weekly charts.
This pattern consists of two ascending and converging trend lines. The upper will connect highs since March last year, while the lower will connect highs in the lowers since August last year.
These two lines are approaching convergence.
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Furthermore, Bitcoin prices formed a bearish divergence pattern. This happens when assets are rising while the top oscillator is moving downward.
In this case, the price oscillator percentage, which is the modified MACD, forms a series of low highs, approaching the zero line.
Similarly, the relative strength index has shifted from a peak of 87.7 in February 2024 to today’s 56. This divergence is shown in the downward trend line connecting the best swings of the month in February and November last year, and this month.
Meanwhile, indicators of accumulation and distribution have been flattened. This is a sign that you have moved from the accumulation stage.
Therefore, Bitcoin prices could have a strong bearish breakdown in the coming days. Such a sale could lower the 50-week moving average to $95,000.
BTC Price Chart | Source: crypto.news
Bitcoin ETF inflows are slowing down
More data shows that demand for Bitcoin ETFs has declined over the past few weeks. This is an indication that institutional investors aren’t buying as aggressively as they have in the past.
Sosovalue data shows that the Spot Bitcoin ETF had more than $1.17 billion last week, much higher than the $547 million inflow the previous week.
More data from Coinglass shows that the amount of Bitcoin held on the exchange has begun to ticket over the past few days. Currently, there are 2.25 million coins, the highest level since August 7th. The rising exchange expenditure is a sign that investors are selling coins.
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