Bitcoin shocked us last week with its biggest drop since November. Within a week, the coin plummeted by 5%. This led us to the question: where will Bitcoin’s death end? It looks like it’s over at this point, but let’s see if the charts hold up.
the weekly chart
As usual, we start with the weekly chart, which allows us to analyze the long-term price. In the image below, each candlestick represents 7 days. Here we can also observe three blue zones that were important for price changes in the past. Bitcoin price is currently moving between the middle and upper zones.
These two levels serve as very important support and resistance, but after last week’s drop, we are also looking at minor support. As you can see, there is an orange line on the chart, but it’s barely visible in the large image above.
found support
This support only becomes more apparent as we zoom in, which is why we also look at Bitcoin’s 4-hour chart. Here we see that this orange “line” is the zone we discussed in Monday’s analysis. There we also said that Bitcoin should hold this zone (around $21,400) in order not to fall further.
As you can see, it worked perfectly and Bitcoin seems to have started to rise. Since bitcoin is below $16,000, the price has gone almost straight up. So it stands to reason that the price will also slow down a bit. The beauty of this small drop is that it creates a higher bottom.
This usually signals the start of further upward movement. Therefore, it would be nice if BTC also made a higher high than the previous one around $24,000. This would confirm the uptrend.
However, a caveat must be made; BTC could lose the orange zone as support. I described this scenario in this review and it remains unchanged. If bitcoin breaks above this orange zone, bitcoin may even rise to the upper blue zone. The latter would mean we could see prices as high as $29,000.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
