- Bitcoin’s technical analyses show a possible long-term bearish scenario.
- Even XRP is not able to lift BTC above $32K, and now the latter has fallen from $30K.
- Traders may be wary about further policing of crypto in the US, alongside other speculations.
Weekends are usually bearish for the crypto market, and it is an unspoken rule that has long reigned since Bitcoin’s (BTC) initial heydays. Much to the disappointment of crypto bulls, however, the charts are signaling growing trouble for Bitcoin.
Bitcoin’s Bearish Scenario May Come Into Play Again
According to popular traders and analysts, Bitcoin is showing an overwhelming bearish sentiment for the last couple of months. One even showed a rising wedge — a bearish pattern — from Bitcoin’s 3-month chart.
A rising wedge usually indicates an abrupt breakdown after a failed rally.
Bitcoin’s price has been trading sideways since hitting $31,000 and has been failing to reach $32,000 in the last couple of months. At the time of writing, BTC is changing hands at $29,864.60, according to CoinGecko.
Another crypto analyst asked, rather ironically, if Bitcoin will break out from its bearish pattern.
Lower Lows and Weak Trading Activity
As observed in the chart below, there is also a lack of trading interest in Bitcoin. What is more, in the last few weeks, Bitcoin is seeing lower lows, which is alarming, to say the least.
BTC/USDT 1-day chart (source: TradingView)
The greater crypto market has yet to decouple from Bitcoin, so it is expected that BTC’s weak movement will affect even blue-chip altcoins. Even XRP, which achieved its legal status as a non-security, is not enough to lift Bitcoin from its poor state.
What Could Be the Reasons for Bitcoin’s $30K Tap Out?
It is not clear why BTC is struggling to keep up its momentum, especially after BlackRock’s hotshot spot Bitcoin ETF filing. However, rumors are circulating that Sam Bankman-Fried (SBF), the infamous ex-CEO of FTX, may be ratting out some crypto figures to American regulators. One mentioned was Justin Sun, whose trading activities may be deemed suspicious by many.
Another is related to the ongoing lawsuit between the Securities and Exchange Commission (SEC) and Terraform Labs, the infamous group behind the Terra (LUNA) fiasco. Still, some are hinting at the possibility of the SEC targeting Tether, the company behind the biggest US dollar-based stablecoin USDT.
Finally, the US was claimed to have sold 9,861.1707894 bitcoins from the 50,000 it seized from the digital black market Silk Road.
