$ 60,000, $ 56,800, and $ 54,000 were major price levels that panicked the Bitcoin market and resulted in losses for traders. Every time BTC falls below the above levels, chants of “Buying Dips” and “Black Friday Big Discounts” spread across social media, and many positive sentiments predict a quick reversal. For now, however, the larger market appears to be sloping downward.

Fear invades the market

When Bitcoin hovered at $ 54,366 yesterday and the price was 20% below ATH, the market returned to “extreme fear” for the first time since $ 43,000 on November 27, 2021.

The source: alternative

The $ 6,000 drop in BTC in a single day impacted the Fear and Greed Index as the value more than halved over the same period. However, at the time of writing, the indicator has bounced back from the “extreme fear” to the “fear” zone with Bitcoin stabilizing above $ 57,000. It is noteworthy that the last time the spot price of Bitcoin was at the same level, the fear and greed index showed “extreme greed”.

Additionally, the price of Bitcoin and the RSI on the daily chart are in a downtrend, making lower lows since November 10th. On the contrary, despite the fall in prices, the funding ratio is still positive, which shows that the market is expecting a rapid recovery that has not yet occurred.

Will Bitcoin Go Up Again Soon?

At this point, Bitcoin’s leverage is still too high to confirm a $ 53,000 low before BTC hits a new ATH. Analysts expect the price to correct further, bringing BTC to $ 53,000 or below to confirm a double bottom before rising again.

Source: CryptoQuant

The price of BTC at the time of writing appears to be creating a falling wedge pattern. At the end of September, the chart also showed a similar pattern and Bitcoin hit a double bottom before the uptrend began.

Notably, the number of Bitcoin addresses with more than 1 BTC now shows a very similar fractal (a pattern that has now been repeated), very similar to what it was last year just before the price broke the ATH.

The source: Matthew Hyland

If the above fractal plays out like 2020, when the price of bitcoin rose nearly 100%, the crypto king could take a big leap in the next month. In addition, the rate of the supply shock still paints an optimistic picture. The price usually follows the supply shock ratio on the exchange, but this time there is a divergence. However, the price could follow as soon as the accumulation increases and the supply on the exchanges decreases.

Bitcoin price is currently trading in a falling wedge after hitting 3 lower lows and 2 lower highs. In the short term, BTC has to increase before the end of the month. A higher end of the month will be critical to BTC’s development in the short term, although December is usually an upward phase for the crypto king. But the volatile price right now can’t say anything for sure.

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