Bitcoin, the leading cryptocurrency, is facing a challenging period as it struggles to break free from a steep bearish trend. Despite attempts to rally, the token has been unable to overcome pivotal resistance levels, leading to concerns among traders and investors.

Stagnation in Price Movement

In recent times, Bitcoin has remained trapped within a predetermined range, unable to sustain upward momentum beyond newly formed highs. This lack of bullish momentum has allowed bearish forces to dominate the market, leading to a continuous downward trend in prices. Whenever Bitcoin attempts to rally with a bullish candle, bearish pressure quickly stifles the momentum, keeping the token's price suppressed below crucial resistance levels.

Impending Downfall

The current trade setup suggests that Bitcoin is teetering on the edge of a significant bearish trend. If bulls fail to defend crucial support levels, a major price downfall could be imminent. The price pattern indicates a potential capitulation phase, which could initially appear as a normal correction but may ultimately lead to substantial profit opportunities.

Technical Analysis and Market Sentiment

Analyzing Bitcoin's weekly chart reveals the possibility of an ABC correction pattern. This correction typically begins with a rejection at the all-time high (ATH), followed by a continuation of the downward trend. The decreasing trend volume further supports the likelihood of a continued drop in prices, potentially affecting the entire cryptocurrency market, including altcoins.

Despite the prevailing bearish sentiment, there are signs of hope in the Relative Strength Index (RSI), which remains near the upper threshold. This suggests that bulls are actively attempting to counteract the bearish pressure, even as trading volume continues to decline. The coming days will be crucial for Bitcoin's price trajectory, determining whether the token can break free from the bearish trend or succumb to further downward pressure.

Looking Ahead

As Bitcoin's price analysis unfolds, traders and investors are closely monitoring market dynamics to gauge the direction of the trend. Whether bulls or bears ultimately dominate the market will not only impact short-term price movements but may also have lasting implications for the remainder of 2024.