Popular cryptocurrency trader Keith Waring has warned Bitcoin (BTC) traders of a critical bearish scenario looming in the market.

Earlier this month, a bitcoin trader spotted an inverted cup and handle, a bearish pattern that formed during a bearish price wave followed by a stabilizing period. Technical design usually restores the price to the magnitude of the previous low.

Bitcoin peaked at nearly $65,000 in mid-April before bouncing back in subsequent sessions. The cryptocurrency dropped to $28,800 on June 22 after repeated attempts to keep prices above $30,000. He did so successfully, but did not extend his bullish reversal momentum after a relatively higher selling pressure in the $35,000 to $36,000 range.

Visualize the bitcoin cup pattern and trade. Source: TradingView, Keith Waring.
The tendency of the model seemed to be approaching exhaustion and Waring said that the price of bitcoin would fluctuate within the structure for another three to four weeks. After that, the cryptocurrency will grow to the point where it can exceed $24,000.

“If the handle breaks, you can expect the new range to be between 24 and 29K. […] Another 3-4 weeks with Rich IMO,” Waring wrote in an update Friday.

Negative outlook due to risky assets
Bitcoin’s bearish warnings intensified for weeks after global regulators intensified their attacks on the cryptocurrency sector. For example, in China, the central bank has effectively banned all forms of crypto-related activity, including mining, one of the few remaining crypto industries since Beijing banned cryptocurrency trading in 2018.

Meanwhile, Binance, the world’s leading volume of cryptocurrency exchange, has faced pressure from regulators in the UK, Thailand, Canada, Japan and the Cayman Islands over its large-scale cryptocurrency transactions.

The UK’s Financial Conduct Authority banned Binance last month. This forced Barclays, Faster Payments and Santander to block bank customers from accessing Binance.

BTC/USD bids went hand in hand with traditional markets due to growing concerns about the global economy, most notably after several days of sharp declines in government bonds, pointing to weaker-than-expected growth and inflation.

“We’re seeing a shift in asset allocation, with people selling risky assets across the board and buying safer government bond yields,” said Chanel Ramjee, senior investment manager at Pictet Asset Management, after the US government hit 10 years of returns. Telecommunications. It fell to 1.276% on Thursday for the first time since February 2021.

Interest rates fall when bond prices rise.

Bitcoin shows an erratic positive correlation with US government interest rates. Source: TradingView
Clem Chambers, CEO of ADVFN’s financial analysis service, suggested that bulls should wait for a crash before plunging into the bitcoin market again, noting that the second-best potential for accumulation appears when the cryptocurrency drops to $20,000.

However, bulls remain hopeful that the increased acceptance of bitcoin into the mainstream, especially amid the persistent fear of rising inflation, will bring the cryptocurrency out of its bearish slumber.

“Bitcoin has been locked in for most of the past three weeks in a long and narrow (8%) trading range from $32,500 to $35,000,” said Ronnie Moas, founder of Standpoint Research.

“I see a 20% deficit [in] China, GBTC insurance or some other negative address, [but] up 150% between now and the end of the year with listed fund approval, another positive headline, [and] a supply-side shock.”

Source: CoinTelegraph