- Bitcoin price shows a distributive pattern on the four-hour chart, hinting at a trend reversal.
- Shorting BTC on a minor pullback to $23,215 is a good place to start, with $21,269 as the target.
- Invalidation of this bearish outlook will occur on a four-hour candlestick close above $23,373.
Bitcoin price shows clear signs of distribution occurring on the four-hour chart, which indicates the possibility of a trend reversal. Moreover, BTC has been consolidating for more than two weeks with no direction in sight, making it a perfect place to form a local top.
Bitcoin price edges closer to a sell-off
Bitcoin price has produced all the signs required to confirm a distribution pattern. This formation occurs after a rally and indicates top formation, where investors that accumulated before or during the uptrend distribute or offload their holdings.
The perfect place to short would be at $24,000 on February 1, when Bitcoin price swept the January 29 swing high at $23,966. This key liquidity run was a pivot point and BTC has shed roughly 6.30% so far.
Another confirmation of a downswing will occur after Bitcoin price breaches the daily support at $22,780 and flips the $22,277 support level into a resistance barrier. In such a case, BTC could slide lower to retest the next daily support at $21,269. In case the selling pressure persists here, the big crypto could tag the four-hour support level at $20,847.
BTC/USDT 4-hour chart
While the pessimistic outlook makes sense from a technical perspective, investors need to note that a flip of the $23,373 hurdle into a support floor will be key to denouce the bearish bias. This move in Bitcoin price will invalidate the bearish thesis and potentially trigger a run-up to the next key level at $23,496.
A decisive flip of the $25,000 psychological level would be key to continuing this ongoing rally. This high timeframe confirmation in Bitcoin price could trigger a run-up to $30,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Japan mulls lifting Bitcoin ETF ban, slashing taxes on crypto gains
Japan's Financial Services Agency has proposed a rule change to bring crypto assets under the jurisdiction of the Financial Instruments and Exchange Act. The proposal, to be reviewed on June 25, could pave the way for the listing of Bitcoin ETFs.
Bitcoin recovers as Iran-Israel ceasefire fuels risk-on sentiment
Bitcoin price stabilizes around $105,000 on Tuesday after a 4.33% gain on Monday, driven by easing geopolitical and regulatory concerns. Global risk appetite is increasing as the ceasefire between Iran and Israel, along with the Fed's softer stance on crypto-related banking, takes hold.
Crypto Today: Bitcoin, Ethereum, XRP consolidate gains after Israel-Iran ceasefire
Tensions in the Middle East have taken the backseat after US President Donald Trump announced a ceasefire between Israel and Iran on Monday. Global markets, including cryptocurrencies, ticked up, boosting BTC's recovery above $105,000 at the time of writing on Tuesday.
Pi Network Price Forecast: Minor recovery teases trend reversal amid GenAI claims, Pi2Day
Pi Network edges higher on Tuesday, holding above a crucial psychological and trendline support. The Pi Core team teases a potential Generative AI feature to be announced on Pi2Day, June 28.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.