Bitcoin’s price is still weak but has seen a small increase after rejecting $60,300 last weekend. However, it is gathering momentum as it forms a new bearish pattern with a 55.8% dominance at press time.
After tapping $62,750 two weeks ago, Bitcoin marked resistance there and showed signs of weakness. This led to a notable reduction and the price dropped to a low of $56,000 last week. It rejected this low and increased an inch above the $60,200 level in the weekend.
Losing grip above this level to $58,200, BTC currently looks poise for a major move as it slowly gathers liquidity for a sell-off. Although the price is briefly up today as it currently trades at around$58,700.
Looking at the bigger picture on the 4-hour timeframe, the bearish build-up is well captured in a lower low and lower high movement and from a technical perspective, the price may drop into the $54k range this week.
A large extension of this drop could plummet the price straight to $50k. Bitcoin’s wedge’s lower boundary should provide support if the monthly low collapses. $70k is a key level to watch for a wedge break-up.
Now that Bitcoin’s fear and greed index stands at 43 after rising a bit to 50 recently, Bitcoin could paint more bearish scenarios until it enters an oversold condition. For now, the supply level is high.
BTC’s Key Levels To Watch
The nearest supports to watch for the next drop are the $56,552 and $53,486 levels. A crack below the monthly $49,000 support could dip the price into the $45,000 – $44,000 zone.
While the $59,704 and $62,745 levels are currently held as resistance, $66,650 would be the next resistance level to watch if the price breaks up.
Key Resistance Levels: $59,704, $62,745, $66,650
Key Support Levels: $56,552, $53,486, $49,000
- Spot Price: $58,719
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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