Bitcoin Price Breaks Through Showing Bearish Engulfing Trend How Far Could the Price Plummet

Coin World Report:


Bitcoin price trend raises concerns as it fails to break through key resistance level, currently showing bearish signals. According to analyst RLinda’s analysis shared on TradingView, the formation of a bearish engulfing pattern suggests that Bitcoin may be reversing its upward trend from last week and experiencing a significant pullback.
Failure to break above $69,000 marks the bearish reversal for Bitcoin
RLinda’s analysis of Bitcoin price trend is based on the formation of a new bearish engulfing candlestick pattern within the daily candlestick chart timeframe. Last week, Bitcoin experienced a notable rebound, pushing the cryptocurrency into a strong buying range around $68,900.
However, despite the strong momentum, Bitcoin bulls failed to push the price above the resistance level of $69,000, facing repeated rejections during the cryptocurrency’s push towards that level.
RLinda’s analysis points out that the inability to break higher levels resulted in the formation of three consecutive daily candlestick patterns with bearish engulfing patterns, suggesting sellers are regaining control.
A bearish engulfing pattern, where the latest candlestick completely engulfs the previous day’s candlestick, is a strong reversal signal indicating the exhaustion of the upward momentum. This pattern, combined with the failure to break the $69,000 region, suggests that Bitcoin may be facing a deeper pullback.
RLinda further emphasizes that the recent rebound appears to be a false breakout of the descending resistance trendline that has been limiting Bitcoin’s price increase since reaching its all-time high of $73,737. Since March, the descending trendline has been the upper limit for Bitcoin price rallies. Although last week’s rebound initially seemed to break this trend, subsequent rejections indicate that the breakout was unsustainable.
In light of this, the analyst points out that Bitcoin has now returned to a consolidation phase slightly below this trendline. As Bitcoin continues to consolidate, the risk of further pullback increases.


Source: X
How far can Bitcoin price adjustment go?
Looking ahead, RLinda expects a pullback in Bitcoin price, with the first downside target set around $65,000. If this level fails to hold, further pullback could lead Bitcoin to drop to $61,000, $58,000, or even as low as $57,000.
However, this bearish outlook is not set in stone. RLinda adds that if Bitcoin successfully breaks above $69,400, the bearish structure may become invalid. Breaking this level would confirm a bullish momentum and a sustained breakout of the descending triangle.
At the time of writing this article, Bitcoin is trading at $66,670, down 0.6% in the past 24 hours. The current price trend aligns with RLinda’s prediction of consolidation below the descending resistance trendline.
Meanwhile, the next few days may determine the closing price of Bitcoin in October (Uptober) in the green zone. Key resistance levels to watch are $66,500 and $65,000, while notable support levels are $68,400, $69,400, and $71,500.


BTC price still below $67,000.