Bitcoin is on the brink of the next abyss. Having suffered two relatively sharp falls so far in this bear market, is the next one about to happen? How low can Bitcoin fall? Is there still hope that the bulls can hold onto this negative price movement and eventually reverse it?
A small rally before a big decline?
source: TradingView
The 4-hour short-term time frame chart shows that it not only contains… Bitcoin price in dollars Divided through the neckline Head and shoulders patternbut it also fell below the bottom of the bear flag, not to mention missing the key horizontal support in the trade.
So where are we now? The price returned higher to confirm the breakdown of the horizontal support at $67,850 (Control point for VPVR indicator) and now carries a subsidy of $66,000. He’s also been back to testing the underside of the bear flag several times now.
The price action has formed a bullish W pattern but this may only send the price back higher to retest the key horizontal resistance of $69,000. The neckline of the head and shoulders pattern is also a potential confirmation target for any recent upward move by the bulls.
This does not necessarily mean that the landscape is ready, and that everything is ready for the next possible correction. But unless some great geopolitical or economic news emerges soon, the next big downward move is certainly the most likely option.
Price action is moving rapidly as I write this article $ Bitcoin It climbs back towards this potential confirmation of the head and shoulders neckline.
Is the collapse confirmed?
source: TradingView
The daily chart clearly shows the risks it poses Bitcoin price in dollars Available now. Again, by drawing parallels with the previous bear flag, this can be seen 50-day simple moving average (blue line) It now acts as resistance, which it had been doing for about a week or so before the big drop from the first flag.
There has been a breakdown of the upward channel in the RSIThe price came back to retest and confirm this several times. The only bullish factor in this chart appears to be the intersection of the indicator lines in the Stochastic RSI. However, these levels could pull back again, just as they did for a while during the reversal from the first bear flag.
A full step measured at $38,000?
source: TradingView
By taking a measurement from the top of the first bear flag, all the way to the bottom of the second, we can find the full extent of the next potential correction. If we then take this measurement, and place it at the top of this bear flag, we can see that this could take the next bearish move all the way to the bottom. $38,000. If we look to the left, there is support at this level, so why is there no bottom there?
The 200-week SMA is about to match the $60,000 horizontal, making this a stronger support area for the bulls, but if this fails, it is… $48,000 or $38,000with the latter being the most likely outcome.
The bottom part of the chart shows the RSI Stochastic indicators. This has been the main bullish factor since the beginning of March, but even here, the indicator lines are positioned to cross back down, perhaps cooperating with this next downward move.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
