Market analysts warned that Bitcoin prices are still 3 to 4 weeks away from the new range of US$24,000 to US$29,000

Popular cryptocurrency trader Keith Wareing warns of Bitcoin (Bitcoin) Traders’ key bearish scenario that the market is brewing.

trader spot Earlier this month, Bitcoin was in a reverse cup handle mode, which is a bearish structure formed during price volatility, followed by a period of stability. Technical design usually causes prices to fall by the same magnitude as the last time.

Bitcoin reached a high of close to $65,000 in mid-April, and then turned down in the following trading day. After several attempts to keep the price above $30,000, the cryptocurrency fell to a low of $28,800 on June 22. It succeeded in doing so, but it failed to continue its bullish reversal momentum after facing relatively high selling pressure in the range of US$35,000 to US$36,000.

Visualization of the Bitcoin cup handle pattern. Source: TradingView, Keith Wareing

The handle portion of the model seems to be exhausted, which prompted Wareing to say that the price of Bitcoin will fluctuate within the structure for three to four weeks. After that, the cryptocurrency will rebound lower, so that it may reach $24,000.

“If the handle is broken, it is expected that 24k -29k will become the new range. […] There are still 3-4 weeks of range fluctuations,” Wareing wrote In the update on Friday.

Negative outlook for the entire risky asset

In the weeks after global regulators stepped up their crackdown on the cryptocurrency industry, Bitcoin’s bearish warnings heated up.For example, in China, the central bank Effective prohibition All forms of cryptocurrency-related activities, including the mining industry, are one of the few cryptocurrency industries that survived Beijing’s restrictions on cryptocurrency transactions in 2018.

At the same time, Binance, the world’s leading cryptocurrency exchange, is under pressure from regulators in the United Kingdom, Thailand, Canada, Japan and the Cayman Islands due to its huge crypto business.

The UK Financial Conduct Authority banned Binance from participating in regulated financial activities last month.This prompted Barclays Bank, Faster Payments and Santander Prevent its bank customers from accessing Binance.

Bids for BTC/USD also fell along with the traditional market due to increased concerns about the global economy, mainly after several days of large fluctuations in sovereign bonds implied that growth and inflation were lower than previously expected.

“We have seen changes in asset allocation, people selling risky assets across the board and buying safer government bonds in return,” famous Shaniel Ramjee, senior investment manager at Pictet Asset Management, said that the 10-year US Treasury yield fell to a low of 1.276% on Thursday for the first time since February 2021.

Yields fall when bond prices rise.

The yields of Bitcoin and the U.S. 10-year Treasury bond show an unstable positive correlation. Source: TradingView

Clem Chambers, CEO of ADVFN, a financial analysis services company, Suggest The bulls should wait for the crash before entering the Bitcoin market again, noting that when the cryptocurrency plummets to $20,000, the next best accumulation opportunity will appear.

Despite this, the bulls still hope that Bitcoin will gain more and more recognition in the mainstream sector, especially in the context of continued concerns about rising inflation, which will free cryptocurrencies from a bearish sleep.

“For most of the past 3 weeks, Bitcoin has been stuck in a long-term narrow (8%) trading range of $32,500 to $35,000,” Say Ronnie Moas, founder of Standpoint Research.

“I think there is 20% downside [on] China, GBTC lock-in or some other negative headlines [but] Between now and the end of the year, there is a 150% upside potential for the approval of exchange-traded funds, and there are some other positive headlines, [and] The supply side fluctuates. “

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