Veteran trader Roman Trading forecasts that Bitcoin might drop to $60,000 due to bearish pressure. This comes after the US government moved $2 billion in Bitcoin, alongside Trump’s pro-crypto speech.
Bitcoin, currently at $66,568, has fallen by 3.83% in the last 24 hours and 0.25% over the past week. This drop could be linked to the government’s Bitcoin transfer.
Bitcoin Shows Bearish Divergence: Potential for Double-Top Reversal
According to Roman Trading, Bitcoin’s 1-day chart indicates bearish divergence, suggesting a possible double-top reversal. This pattern occurs when Bitcoin reaches new highs, but momentum indicators like the RSI or MACD fail to confirm the trend, signaling a potential loss of upward momentum.
Analyst Tweet – Source: X
The presence of a double-top setup implies that Bitcoin might peak before undergoing a downward correction. Recent data shows Bitcoin dropping from $69,811 to $66,842, marking a $3,000 decline in just 24 hours, which could signal growing bearish sentiment.
Roman Trading advises that Bitcoin may continue to fall if it cannot maintain the resistance level at $66,000. Key support levels to watch include $64,000 and potentially $60,000.
Impact of Recent U.S. Government Actions on Bitcoin’s Price
The recent drop in Bitcoin’s price appears to be linked to significant actions by the U.S. government. On Monday, the government moved $2 billion worth of seized Bitcoin, which had a substantial impact on the market. This transfer occurred just two days after presidential candidate Donald Trump announced plans to acquire Bitcoin (BTC).
Source: X
The transaction involved transferring 29,800 BTC to a new address, which had no prior transaction history. This address then acted as an intermediary, forwarding 19,800 BTC to another address, while 10,000 BTC, valued at around $670 million, was sent to a third address.
Despite these bearish indicators, veteran trader Roman Trading remains optimistic about Bitcoin’s future. He suggests that excessive negative sentiment could create conditions conducive to a significant price rally, as overly pessimistic traders might set up the right environment for a substantial increase.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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