Bitcoin Sees Third Consecutive Daily Decline Amid Potential Bullish Reversal

• Bitcoin eyes worst monthly performance since late 2022 amid investor caution.
• Despite April’s 17% decline, Bitcoin remains 35% higher year-to-date.
• Technical analysis indicates a bullish three-drive pattern, signaling a potential reversal.

Bitcoin’s value dropped for a third consecutive day on Wednesday, marking its worst monthly performance since late 2022. The cryptocurrency’s decline comes as investors brace for an upcoming Federal Reserve interest rate decision.

In April alone, Bitcoin’s price fell nearly 17%, reversing gains from a strong rally earlier in the year that saw its value exceed $72,000. The significant decline in April has placed Bitcoin technically in a bear market, with its value now 22% below the record high of $73,803 recorded in March.

Despite this, the currency remains 35% higher year-to-date and is currently priced double that of the previous year. This surge is largely attributed to significant investments in new exchange-traded funds that began in January.

BTC/USD 24-Hour Chart (Source: CoinStats)

As of press time, Bitcoin is trading at $57,181.99, down 7.49% over the past 24 hours. This drop aligns closely with a 7.43% decrease in its market capitalization, now standing at approximately $1.12 trillion. 

Conversely, the trading volume has surged by 62.99%, reaching over $45 billion. This rise in trading activity suggests that, despite recent price dips, investor interest in Bitcoin remains strong.

Crypto Experts Unfazed by Bitcoin’s Latest Dip

In the face of a recent downturn in Bitcoin’s price, seasoned crypto traders appear undisturbed, attributing the decline to a typical market correction. Raoul Pal, CEO of Real Vision, observed that this marks the fourth 20% correction for Bitcoin within the past year, a pattern he describes as “pretty ordinary stuff.” This sentiment was echoed on April 30, following a period when Bitcoin had previously peaked at $75,830 on March 14.

Contributing to the discussion, a pseudonymous trader known as Rekt Capital weighed in on the situation. He suggested that such corrections are essential for aligning Bitcoin’s value with its historical pricing trends and the traditional Halving Cycle, which market analysts closely watch for hints of Bitcoin’s long-term trajectory.

Further analysis of Bitcoin’s price chart by crypto trader Gally Sama revealed the formation of a cup-and-handle pattern, a bullish signal in market analysis. This pattern typically indicates a potential upcoming price breakout. 

Sama noted that the handle portion of the pattern is developing near or above previous high points, suggesting an optimistic outlook for Bitcoin’s price movement in the months ahead.

BTC’s Bullish Three-Drive Pattern Emerges

The BTC token is displaying a bullish three-drive pattern on the 1-day chart, indicating a strong buying opportunity. This pattern often signals a potential reversal where the price might start to climb after hitting a low point. 

BTC/USD 1-Day Chart (Source: Tradingview)

As of this publication, the BTC token is nearing the completion of its final descent before it could potentially reverse direction and ascend to higher price levels. As the market stands, the BTC token is approaching the 50% Fibonacci retracement level, which serves as its immediate support. 

If this level is breached, prices could decline further as the token retests the next support level below. However, if the 50% Fibonacci level holds strong, BTC prices are expected to rise, challenging the resistance at the 61.8% Fibonacci level, which was former support. A successful breach on this point could propel BTC prices beyond $67k.

BTC/USD 1-Day Chart (Source: Tradingview)

Technical indicators also reflect a potential shift, with the Relative Strength Index (RSI) currently at 32.13 and trending downward below the signal line. This suggests that the BTC token is moving toward the oversold territory, which could lead to a price recovery in the short term.