The Future of Bitcoin Price: Is the Bull Run Coming to an End?

Ever since the Bitcoin price smashed a new all-time high above $104K, the token has been struggling to sustain its gains. Despite constantly testing the highs above $100K, the price is closing the day’s trade below the range, raising uncertainty and increasing selling pressure.

A leading indicator has turned bearish, signaling a potential delay in the bullish continuation. The recent price action suggests a decrease in bullish strength as buying volume fades. This begs the question: Is the end of the Bitcoin bull run near? Is the token entering the final phase of the bullish cycle?

Bitcoin’s price has been trading sideways in recent days, unable to stay above the pivotal range. After breaking out of the range, the price is now testing the resistance-turned-support zone. While a rebound after the current retracement is possible, it will only happen if the token can stay above key support zones.

With a decline in volume from the highs above $150 billion, Bitcoin’s volatility has also decreased significantly. The Bollinger Bands are parallel, indicating a period of sluggish behavior while altcoins surge in dominance. Additionally, the RSI shows a bearish divergence, supporting a downward trajectory.

Short-term price action suggests a potential drop as momentum forms lower highs while the price forms higher highs. Even if the market remains sideways or overbought, a local correction is likely. The fear of a drop below key support zones looms as upward pressure increases. However, some on-chain readings support a bullish outlook, hinting at a possible rebound soon.

The chart above shows an increase in Bitcoin’s illiquid supply, indicating more long-term holdings and less on exchanges. When demand rises and supply on exchanges is limited, prices can be driven higher. Exciting price action is expected for Bitcoin ahead of the yearly close, but the current drop in volatility is a cause for concern.