Bitcoin structure weakness- Is this the end of BTC’s relief rally
Bitcoin [BTC] bears demonstrated weakness at the beginning of August after failing to push towards its support line. Fast forward to the present and a similar observation has occurred with the bulls.
This confirms structure weakness but also underscores increased uncertainty regarding BTC’s next move.
After briefly managing to push above $25,000, BTC bulls failed to sum up further upside. The king coin instead embraced a pullback to its press time price of $23,806.
However, it also appears that the bearish performance for this week has been limited.
Source: TradingView
A closer look at its indicators reveals that BTC might be headed for some more downside at first glance.
For example, its Relative Strength Index (RSI) just crossed below its 14-day SMA, confirming momentum weakness on the side of the bulls.
The RSI has also been moving within a trend line and this may also provide a rough idea of where BTC is headed.
Source: TradingView
Bitcoin’s RSI is retesting a support line, from which it bounced off within its ascending range. However, it had already crossed below this line slightly at press time, indicating a significant probability of a breakout from the pattern.
The current outcome does not necessarily mean that BTC is headed for more downside. There is still a chance of a bounce back from the support level. However, on-chain metrics might be better suited to explain the current outcome and potential direction.
The Purpose Bitcoin ETF holdings trimmed down its BTC balance by roughly 3,398 BTC from 11 August to 16 August.
That is roughly $81 million worth of selling pressure. While this might not be much as compared to Bitcoin’s market cap, it might have a substantial impact if the amount of BTC on exchanges is low.
Cumulative
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