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Bitcoin Faces Short-Term Downturn as Bearish Setup Forms

While Bitcoin maintains a strong long-term bullish outlook, technical indicators suggest a potential short-term decline. Market analyst Lark Davis has pointed out a bearish setup that could present a chance for short sellers.

Davis highlights that Bitcoin's price is currently trapped within a descending channel. The recent bounce from the upper resistance level of this channel is often a signal of weakening upward momentum.

Further reinforcing this view is the Stochastic RSI, which has recently shown a bearish crossover. This is typically seen as a signal that a price drop is likely in the near future.

Short-Term Bearish Outlook, Long-Term Bullish Trend

Despite the short-term bearish scenario, Davis notes that the overall trend for Bitcoin remains bullish. He suggests that any potential pullback could be temporary, with the ideal take-profit (TP) zone located near the bottom of the descending channel.

Simonas Brazionis

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Simonas is a crypto and blockchain expert with 6 years of experience. Passionate about the industry he educates others on blockchain technology, and continuously expands his knowledge. He has helped many newcomers understand crypto, navigate investments, and stay informed about trends like DeFi and NFTs.