Bitcoin, which started the day with a decline, fell from $ 27,400 to $ 26,600.
While investors wanted to see levels above $30,000 in Bitcoin, CryptoQuant analyst gave a bearish warning for BTC.
Noting that a descending triangle formation has formed in Bitcoin, the analyst stated that this formation could potentially signal a collapse after a jam market.
Saying that this pattern is usually associated with a final breakout, the analyst warned that a major breakout may occur at the end of this pattern and lead to a significant drop in prices.
Regarding the descending triangle formation in Bitcoin, the analyst said:
“When we look at the on-chain data, we see that the inflows to the stock markets have increased more than the exits.
Such an imbalance could be interpreted as a sign that more investors want to sell their Bitcoin holdings, potentially leading to bearish market sentiment.
So if the current descending triangle pattern is completed and BTC price deviates from the support line, there is a possibility of a bearish collapse.
Although this data alone is not a clear indicator for a decline, considering the steady continuation of the descending triangle formation formed in Bitcoin, it raises concerns about the price of BTC and a possible decline.
For this, support and resistance lines in Bitcoin should be followed and a possible break should be expected. Investors should be very careful at this stage."
Another CryptoQuant analyst recently drew attention to the importance of the $27,200 level in Bitcoin, warning that if BTC fails to recover this level, it may face a significant decline in the near future.
*Not investment advice.