Hi everyone, I hope you're all doing well.
Last time, when market sentiment was extremely bullish, I said that the bullish cycle was coming to an end. As it turned out, that analysis was accurate.
Today, however, many people are talking about the bearish cycle being over because of the recent price recovery. But from what I see on the chart, Bitcoin is currently facing two major resistance levels.
The first is the weekly descending trendline, and the second is a well-established bearish AVWAP. The area where these two resistance levels converge is marked with a red circle.
In my opinion, the probability of breaking both resistances at this stage is relatively low. A more reasonable scenario is one more bearish leg before the next bull run begins.
My target range for the end of that final bearish leg is approximately $52,000 to $56,000.
I hope you find this analysis useful. As always, I'd be happy to hear your thoughts.