The crypto markets are becoming volatile every day as the hopes of bullish and bearish price actions have been reviving at frequent intervals. The Bitcoin price has soared above $65,000, with the possibility of hitting $70,000. However, the consolation which followed the major upswing has demonstrated the possibility of a small pullback. However, this may not ascertain the beginning of a fresh descending trend, as a major upswing is yet to begin.
The bears have begun to offer strong pressure and have kept the price restricted below $65,000 since the last trading day. After the recent bounce from the local support at around $55,000, the market participants had become hopeful of a 15% to 18% rise. Unfortunately, after rising by 12%, the bulls are displaying weakness which may not be a good signal for the BTC price rally for the rest of the week.
The price continues to trade within the descending parallel channel and is currently stuck up slightly above the average bands. The Gaussian channel was bearish since the start of the month, but the rejection from the middle bands has differed in the possibility of going long. Besides, the on-balance volume, or OBV, which is a volume-based indicator, trades within a descending parallel channel, similar to BTC, certifying a bearish trend.
In the previous composition, the similarities between the 2021 rally and the current trend suggest the token is under a bullish influence in the long term. Therefore, some possibility of reversing the bearish perspective emerges. If the Bulls manage to rebound from the average bands of the parallel channel at $63,500, then the bearish narrative may be squashed for a while. However, to initiate a strong ascending trend, surpassing the upper bands of the Gaussian channel at $68,200 is mandatory, which may push the Bitcoin (BTC) price to $70,000.