Bitcoin Bearish Forecast

11 Jul 2023

BTCUSD
Bitcoin's current price hovering around the 30K mark has indeed encountered significant resistance, both in the form of diagonal and horizontal trend lines. Drawing inspiration from the ancient Egyptians and Greeks, who harnessed the power of geometry to predict structures and major events, we can explore how these geometric principles may shed light on Bitcoin's current situation.

In ancient times, geometry was employed to understand the physical world and make predictions based on observed patterns and relationships. Similarly, in the realm of financial markets, chart patterns and technical analysis often rely on geometric formations to anticipate price movements. While it's important to note that these methods aren't foolproof and should be considered in conjunction with other factors, they can provide valuable insights.

Let's delve into the two lines of resistance affecting Bitcoin's current trajectory. The diagonal resistance suggests a sloping trend line that intersects with the price at multiple points, indicating a consistent barrier to upward movement. This pattern implies that Bitcoin faces ongoing selling pressure, preventing it from surpassing this threshold and potentially signaling a bearish sentiment among traders and investors.

On the other hand, the horizontal resistance signifies a flat barrier that spans across a specific price level. This line could represent a psychological or historical resistance level, where sellers have previously emerged in significant numbers, resulting in price reversals. Horizontal resistance levels often act as strong barriers, as they are firmly etched in the collective memory of market participants.

Combining these geometric resistance lines with the current market sentiment and other fundamental indicators, it is plausible to consider the likelihood of Bitcoin experiencing further downward movement before mounting a substantial recovery. The presence of multiple resistance lines creates a formidable obstacle that Bitcoin must overcome to regain its upward momentum.