Bitcoin Price Prediction: Shooting Star Pattern Raises Concerns

A recently emerged Bitcoin (BTC) price prediction has the crypto community worried as it points to a "shooting star" candle on Bitcoin's weekly chart, which could signal a bearish sentiment. The analysis shows that this candle has a big upper wick, indicating that Bitcoin may reverse direction while trading around its historical high.

Understanding the Shooting Star Pattern

The "shooting star" pattern often appears when prices hit resistance levels, suggesting that buying momentum is slowing down and selling pressure is increasing.

In technical analysis, a shooting star appears when an asset's price opens, climbs sharply, and then retraces to close near its opening level, leaving a significant wick at the top. This pattern typically indicates that buyers can't push the price higher, encountering resistance that may lead to a downturn.

The latest shooting star pattern was formed last week as Bitcoin attempted to surpass its March high but fell short by less than one percent, leading to speculation about the strength of the current rally.

Expert Opinions

This cautious outlook is echoed by renowned trader and Bitcoin enthusiast Peter Brandt, who recently shared this prediction on social media. He previously indicated that for a genuine Bitcoin breakout to occur, the price must close above $76,000 per BTC on a daily chart, confirmed by a weekly close on Sunday at midnight.

In conclusion, the increase in bearish signals around previous high points suggests that Bitcoin might need to consolidate further before any sustainable rally can take place.

This article was originally published on U.Today