Bitcoin’s recent price surge ended abruptly, with prices falling back to pre-pump levels. It looks like the bears are back in charge. While many expect another quick recovery, analyst Melikatrader suggests two scenarios, both ending badly for Bitcoin bulls.
Scenario Breakdown: A Bearish Outlook
Both scenarios begin with a bullish price jump followed by a bearish drop. The key trigger? Bitcoin broke below a crucial lower trendline after previously breaking out of an ascending channel (higher highs and higher lows). This signals growing bearish pressure.
Scenario 1: Rejection at $118,000
Bitcoin rallies, but faces strong resistance around $118,000. This is a supply zone where sellers could flood the market, pushing the price down.
Scenario 2: Double Rejection
Bitcoin pushes past the first supply zone at $118,000. However, it then hits another supply zone just below $120,000 (currently around $19,700), leading to another massive sell-off.
The Bottom Line: A Potential Floor
Despite the different paths, both scenarios share a similar bottom: around $115,800. This level represents previous support and demand, suggesting buyers might step in to prevent further decline. This could mark the start of the next rally.
