Since almost hitting $67K ten days ago, the $BTC price has entered into a short-term timeframe downtrend, making consecutive lower highs and lower lows. Is this downtrend going to continue, b
Since almost hitting $67K ten days ago, the $BTC price has entered into a short-term timeframe downtrend, making consecutive lower highs and lower lows. Is this downtrend going to continue, bringing the price down to the $62K area?
Source: TradingView
The short-term time frame chart shows the two lower highs and lower lows so far for the $BTC price. If this sequence is going to continue, it would be expected that the current price level will come down to test the bull market trendline at the very least.
The bearish head and shoulders pattern is still very much in evidence. The price has advanced several times now to the neckline of the pattern, and as can be seen, it has been rejected on every occasion. The last time the price rose it was also rejected by the top of the descending channel, making this resistance once again.
If the $BTC price comes straight down from here, the descent could be arrested at the bull market trendline. $63,250 and $62,250 are the horizontal support levels.
Source: TradingView
Moving further out into the daily time frame the fakeout from the descending channel can be clearly seen. The 50-day simple moving average (SMA) is underneath the $BTC price now, but caution is advised if the price falls below. The last time this happened, a crash from $77K down to $60K ensued. The time previous to that, $90K down to $60K was the massive price fall.
At the bottom of the chart, the rising wedge in the RSI may be about to break down. The indicator line is starting to move below the bottom trendline. If it is still there at the end of the day the breakdown process will have begun. Look for a corresponding breakdown in the $BTC price action.
Source: TradingView
It’s looking very much like the current weekly candle (the 9th so far) is going to close beneath the $66K horizontal resistance again. It is presently just about holding above the 200-week SMA and has bounced from the bull market trendline yet again.
Something has to give, and it’s probably going to happen in the next week or so. Bitcoin is very much at the mercy of the markets as well as its own bottoming process. The oil price looks as though it may start climbing again soon, probably to the detriment of U.S. stocks. This would not be a good scenario for the $BTC price.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
