• Bitcoin rises 1.9% to $116,180, but a weekly decline of 2.14% sparks concerns over market volatility.
• Analyst warns that Bitcoin’s current daily high has only a 5.9% chance of holding for the day.
• Shorter wick formation suggests weaker price movement, decreasing the chance of sustained gains.

Bitcoin (BTC) is trading at $116,180, marking a 1.9% increase over the past day at the time of writing. The trading volume for the same day stands at $96.86 billion, showing a 31.13% increase. Over the past week, the BTC price has gone down by 2.14%.

Source: CoinMarketCap

Bitcoin’s Price Action Concerns

Analyst Jip Molenaar expressed a concern over the current price action of Bitcoin. He highlighted that the daily high, which is shown as the first pivot of the day, has minimal chances of holding. Analysis of Bitcoin candles produced by the daily highs over the past two years indicates the day highs occurred on only 5.9% of all days. This implies that the prevailing high level is not likely to persist.

Source: X

The formation of the wick of Bitcoin also indicates a warning with further investigation. Molenaar discovered that 95% of Bitcoin’s daily candles in the last two years were bigger-wicked than the present one. A shorter wick is normally an indication that the price move was less vigorous and, therefore, reduces the probability of the current price sustaining.

Source: X

Also Read: Michael Saylor’s Strategy Boosts Preferred Equity Sale to $2B for Bitcoin Purchases

Nonetheless, Molenaar suggests not shorting Bitcoin on a daily basis following these signs of bearishness. He noted that though weekly statistics are in favor of the bears, it is too risky to short the market at current conditions. He proposes waiting instead until BTC breaks its range low. In case this occurs, intraday long positions may occur, particularly when the price reaches the low-probability high.

Source: X

Uncertain Market Sentiment

The sentiment of the market is neutral. Some traders are still cautious, as there is a warning sign, but some traders think that there is an opportunity to earn a profit in the short term. The micro wick and low probability pivot indicate that BTC might reverse, but in the long run the market trend is not evident.

The price action of BTC is still unpredictable, and traders ought to be keen. Although the crypto has demonstrated positive short-term returns, the bearish technical signals imply that the market can go in any direction. The chances of BTC maintaining its present price level are not certain at all, and therefore, the market will keep on waiting to see any indications that it will soon be reversed.

Also Read: Bitcoin ETFs Bounce Back with $226.6 Million Inflows After Three-Day Slump