Yet again, Bitcoin bears have triggered a huge crackdown on the crypto markets as the global financial markets have tumbled heavily. Following the rate cuts in Japan and the rising possibility of a recession in the US, the market participants appear to have fallen into a deep FUD well. Therefore, the Bitcoin price, which has already dropped below $50,000, is expected to drop again, which may revive the possibility of forming new lows close to $45,000 in the next few hours. The BTC price is forming a similar pattern that it formed in recent history and hence the outcome is believed to exhibit a similar price action ahead.
Bitcoin has faced massive bearish action as huge uncertainty hovered over the token in the past. During the COVID-19 crash, the prices dropped below the support of the broadening wedge and formed massive wicks. However, a rebound occurred, which turned the bearish market into a bullish one and elevated the levels from the 4-digit figure to above $10,000 in just a couple of weeks.
Comparing the above charts suggests the price could consolidate along the support for a couple of days, as the prices took nearly a week to 10 days to initiate a rebound. Therefore, the bulls are expected to remain passive for a while and after accumulating some strength, they could regain the lost levels. If the token repeats the pattern, then the price is even expected to reach the much-awaited milestone of $100,000 too.
The BTC price experienced a massive plunge, which caused the token to drop below the crucial support of the Bollinger bands. The price has never dropped below the lower bands of the Bollinger in the recent past or during the 2022 bear market. The volume has also risen heavily, which may settle in the next few days. Further, the price may witness a notable rise with a slight rise in buying pressure.
Besides, the RSI has dropped below the lower threshold, heading towards 20 or below, similar to that of the trade that occurred in August 2023. After a brief consolidation, the Bitcoin (BTC) price triggered a 190% upswing to mark a new ATH. Therefore, a similar trade is expected to repeat, which may elevate the price levels close to the $100K milestone.