In the past two weeks, the Bitcoin market has entered a phase of consolidation, lacking a clear direction for a breakout. However, the bears seem to be gaining an upper hand in the short term as the price bounces above the 200-weekly moving average. If the bullish sentiment loses momentum in the coming days, we could witness a decline toward the $25.5 mark, potentially placing the leading cryptocurrency under the pressure of the weekly death cross.
Nevertheless, Bitcoin remains a top performer compared to the equities market, which is under pressure from inflation and rising interest rates.
Bitcoin Price Analysis by Peter Brandt
According to one of the most popular traders, Peter Brand, Bitcoin price is most likely headed on a more outright downtrend. In his latest analysis, Brandt noted that Bitcoin has a short-term bearish outlook based on a daily pennant or flag candlestick formation. Most often, a pennant formation in a falling trend is an accumulation of bear strength, which essentially signals more sell pressure in the market.
Previously, Brandt had noted that Bitcoin price has been forming a head and shoulder candlestick pattern that could result in a short-term downtrend. As a result, the analyst concluded that the Bitcoin market could experience one more shakeout before a bullish outburst.
Market Outlook: BTC Struggles With Liquidity
The Bitcoin market continues to struggle with overall liquidity despite a more than 60 percent spike YTD. According to market aggregate data provided by Coinglass, the top four centralized crypto exchanges by daily traded volume – including Binance, Coinbase Global, Bitfinex, and OKX – have recorded an increase in Bitcoin balance over the last seven days. Historically, an increase in Bitcoin deposits on centralized exchanges is perceived as a bearish outlook in the short term perspective.