The post Bitcoin Price Warning Signs Point To This Possibility appeared on BitcoinEthereumNews.com.

Bitcoin price action is displaying several warning signs that could indicate a short-term price decline despite an overall bullish macro landscape. Technical analysis of both Bitcoin and the US dollar charts, combined with the M2 global liquidity index, suggests BTC may face downward pressure in the coming weeks before resuming its upward trajectory. The cryptocurrency is currently struggling at the 50-day moving average while facing resistance from a lower high trend line. US Dollar Correlation Points to Bitcoin Price Consolidation Phase The US dollar chart reveals similarities between current market conditions and those observed in July 2017. According to the analysis, the US dollar is currently breaking a key trend line and testing the lower boundary of a long-term wedge formation. This pattern closely resembles what occurred during the first Trump administration in mid-2017. Source: X What makes this correlation particularly relevant is how Bitcoin behaved during that previous period. In July 2017, Bitcoin price had just broken its previous all-time high and entered a retracement phase following its exit from the bear market. The current situation mirrors this pattern closely. The analyst identifies an inverse head and shoulders pattern currently playing out in Bitcoin’s price structure. Bitcoin is experiencing a throwback to the neckline of this pattern, which coincides with the 50-week moving average around $77,000. This technical confluence provides a strong support zone that will likely be tested if the current consolidation breaks down. Following the July 2017 consolidation, Bitcoin experienced a multi-month parabolic bull run alongside significant altcoin performance. The analysis suggests that once the current consolidation completes and clarity emerges regarding Federal Reserve policy and tariff concerns, a similar powerful move could be in store. Technical Analysis Indicates Possible Price Pullback Bitcoin currently faces multiple resistance barriers on shorter timeframes that could trigger a pullback in…

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Filed under: News - @ April 19, 2025 4:17 pm