Bitcoin [BTC] is still facing obstacles confined within a descending parallel channel. Despite recent optimism, there are no clear signs of a breakout on the horizon.
Following the rejection at the upper boundary, BTC might be heading towards lower levels unless it successfully surpasses a significant price threshold.
Indicators Pointing towards a Bearish Trend
The most recent price action of BTC encountered resistance and was turned away from the upper boundary of the descending parallel channel at 66K.
This rejection at the upper boundary has shifted focus towards the middle boundary of the channel, positioned at $58,000, or even the lower boundary at $52,000 in extreme scenarios.
Traders anticipating a bullish breakout would need to witness BTC closing above $66,000—an important resistance level that has proven to be quite strong.
Increased Market Activity Driven by Realized Profits
The Bitcoin market remains highly active, evident from the $5.64 billion in realized profits recorded within the last 24 hours, indicating extensive profit-taking activities.
This surge suggests that investors are capitalizing on gains, possibly leading to downward pressure in the upcoming period.
Surge in Bitcoin Social Sentiment
In addition to the mentioned metrics, social sentiment surrounding BTC has surged recently, as per Santiment data.
This surge in activity could be attributed to renewed speculations regarding Satoshi Nakamoto, the enigmatic figure behind Bitcoin’s creation.
While a surge in Bitcoin social sentiment might fuel short-term volatility, the chances of sustaining a significant price rally without first surpassing the $66,000 mark appear slim.
Despite the vibrant market activity indicated by realized profits and social sentiment, the technical outlook for BTC remains uncertain. The $66,000 level remains crucial for any potential breakout.
Until then, traders should be prepared for potential downward movements towards $58,000 or even $52,000.