The crypto space, since the start of trading in 2022, exhibits its hazy behavior and due to which many traders still remain isolated. After a modest rise, most of the assets experienced a steep decline, which wiped out the gains of the past few days. Hence, now that the bears have become more impatient, it is time for traders to be cautious before entering the market.
Star crypto, bitcoin has been playing around $30,000 for the past several days. The price continued to be rejected from the $32,000 level but it also held the support level at $28,700. And this is when the trend of the asset and the crypto market as a whole becomes unpredictable. Adding to the essence, BTC dominance continues to grow. At press time, it holds 46.3% and therefore with heavy dominance, other altcoins should follow bitcoin.
What awaits the price of Bitcoin (BTC) next?
Despite the significant price divergence, the price of BTC has the potential for further massive downside.
As the daily-BTC chart above shows, the asset has formed a significant bearish flag after an extended consolidation. And so it can force the price to flow south. Unless the trend is within a parallel channel, the market may remain cut-off. But if the trend line breaks out, which is very likely, a steep decline could drag the price to $25,000 or below.
Hence, given the current uncertain market environment, it is safe to wait for the confirmation of the trend. The market could turn bullish if bitcoin price successfully crosses $32,000. Otherwise, if BTC price drops below $28,000, a bearish trend may remain for some time.