The Bitcoin price has dropped below the bullish pattern as the selling volume accumulates, compelling the price to drop considerably. As the price soared above $44,000, the longs were liquidated, dragging the price below $43,300. In the long term, the token continues to remain under bullish influence, but in the short term, the BTC price is feared to attract some bearish pressure.
The fresh descending trend has now dragged the price close to the lower support region, and a minor pullback below this region may trigger a fresh bearish action. The BTC price in the short term was trading within a bullish pennant, and a significant reversal was expected to lift the price higher. Unfortunately, the fresh descending trend dragged the price below the pattern, indicating the beginning of a fresh bearish action.
The BTC price is currently trading within a megaphone-like pattern, with the price facing rejection from the upper resistance line. With this, the potential for a significant drop increases, targeting the lower side of the megaphone at around $36,500 to $37,500. The megaphone patterns are usually known for their unpredictability, holding the capability of breaking out in either direction. If the bulls successfully hold above the lower trendline, the ultimate target of around $50,000 could come under pressure.
Conversely, the bearish case will be validated if the price fails to rebound with full strength after testing the lower support. With the rebound, if the price faces a rejection anywhere below $43,500, the bearish narrative for the Bitcoin (BTC) price may be triggered, which could drag the price to as low as $38,200 or slightly below these levels.
While the bearish narrative does not appear very likely, the Bitcoin price is speculated to rebound after a minor pullback.
