Bitcoin Breaks Down from Rising Wedge, Bears Gain Control

Bitcoin's recent price drop has sparked concerns about a potential bear market. As of July 28, the cryptocurrency has fallen to $63,274, down 3.11% from its previous value. The daily trading volume has increased by 75% to $27.79 billion, which some traders view as a negative sign for bulls.

The rising wedge pattern that had been in place has broken down, giving bears control of the market unless Bitcoin recovers the trendline quickly. A bearish engulfing candle and higher timeframes trending bearishly do not bode well for short-term optimism. Moreover, traders describe the selling pressure as 'unusually violent'.

The $63K range is currently the key level that will decide Bitcoin's next move. If it holds, this could lead to another shakeout before a potential continuation higher. However, if it breaks, the price may fall to $61K, with $60K being the next support level. The short-term momentum of Bitcoin is still trending bearishly, and the emergence of a death cross could signal further declines.

The Moving Average Convergence Divergence (MACD) line has crossed below zero, indicating a firmly bearish trend. This setup gives sellers full structural control of the market, making buying or going long risky until a bullish crossover occurs. The daily Relative Strength Index (RSI) at 35.23 hints at weak bearish momentum approaching oversold levels.