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Bitcoin has been on a rocky ride for the past week, considering its dip and the immediate and exponential pullback. The price closed after a 35% hike, but it shot up by 38% in over 16 hours. Some speculated that this was due to Chinese President Xi Jinping’s blockchain announcement, while others attributed this rise to Tether.
Regardless of the reason behind the surge, the price has shot up and it has been consolidating for over 5 days now. This consolidation has fit into a descending triangle, a bearish pattern. The price of BTC is nearing the end of the pattern, indicating an impending bearish run for Bitcoin.
Source: BTC/USD on TradingView
Moreover, the 100-Day moving average sits right below the price and is acting as temporal support until it is breached. However, the price seems to be stuck in a dilemma as the 200-Day moving average sits just above the price, preventing it from rallying higher.
At the time of writing, Tether has finished printing another 15 million USDT. Moreover, another 6 million USDT were printed on 29 October, which followed 4 million USDT on 29 October. It is clear that Tether has a very strong hold on Bitcoin’s price actions. Considering Tether’s movements in recent days and how they’ve consistently burned 370 million USDT twice over the last two days, it seems like Bitcoin might be heading lower.
Once the pattern is breached, it will pull the price of BTC down to approximately $7,800, which also happens to be the 0.5 Fib level and a very strong level of support for Bitcoin. For the same to happen, the price has to breach the 100-Day moving average.
Target
Bitcoin’s price is in limbo right now. However, over the next 36 to 48 hours, the price of Bitcoin will hit $7,835.