CRYPTO MECHANIC
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The Bull Market Is Over? How Low Bitcoin Can Go?
Last week was a roller coaster ride for the crypto traders. From trump making a post to Bitcoin becoming strategic reserves in the US and then a disappointing white house crypto summit.
Good thing is the drama is now over.
Lets dive into Bitcoin chart.
Before we discuss the current price action lets see what we discussed in my last week's Bitcoin update. 👇
My last week's update was around $92k and i mentioned if we lose $90k price can give back this whole trump move.
And now Bitcoin is trading at $82k. What can we expect now? Lets discuss.
BTCUSD (Weekly)
Keeping it straight forward. The weekly chart is now closed below $90k. The range it was holding 3 months. As long as we don't see it reclaim this zone. The weekly bullish structure is now broken.
BTCUSD (Daily)
If you see it on the daily chart, You can see how price flipped the previous support level into resistance. This isn't what bull market does right?
Bitcoin getting rejection from $90k zone also confirms that this whole range was a distribution range and the trump move was just a throwback into the distribution level to grab more liquidity.
What can we do during this condition?
You don't want to be someone catching a falling knife knowing that the trend is clearly bearish and price flipping the previous support into resistance.
It's good to wait for a price break out that will confirm the trend is about to shift or some high time frame zones.
How low Bitcoin can go?
When the structure is bearish, You can expect the price continue to push down as long as it doesn't break the bearish structure.
Looking at the weekly chart, The first logical level i see is $69k-74k. It's the level that you can expect to act as support because it was previously a resistance. Just like $90k was a support and now acted as resistance. (Very basic charting pattern)
Now i am not saying price will go there and nor i am saying that zone will provide a bounce we are discussing the probabilities here.
BTC Monthly Zone
I also want to mention this monthly zone.
To be honest, As high timeframe chart is ticking down. I am ready for the worst case scenario.
I wouldn't be surprised if BTC drops under $70k and into $60's. When market starts to capitulate. It gives you unexpected prices. Obviously it's not going to happen overnight. It's a monthly/weekly analysis and will take weeks to play out but you have to keep an open mind.
I do not know which level will give us a reaction whether it's going to be weekly zone or the monthly zone but you have to be prepared psychologically and mentally for the worst case scenarios.
This is it for the $BTC update. I'll keep you updated if i see any changes.
I would love to read your thoughts as well, let me know what you think.
Good thing is the drama is now over.
Lets dive into Bitcoin chart.
Before we discuss the current price action lets see what we discussed in my last week's Bitcoin update. 👇
My last week's update was around $92k and i mentioned if we lose $90k price can give back this whole trump move.
And now Bitcoin is trading at $82k. What can we expect now? Lets discuss.
BTCUSD (Weekly)
Keeping it straight forward. The weekly chart is now closed below $90k. The range it was holding 3 months. As long as we don't see it reclaim this zone. The weekly bullish structure is now broken.
BTCUSD (Daily)
If you see it on the daily chart, You can see how price flipped the previous support level into resistance. This isn't what bull market does right?
Bitcoin getting rejection from $90k zone also confirms that this whole range was a distribution range and the trump move was just a throwback into the distribution level to grab more liquidity.
What can we do during this condition?
You don't want to be someone catching a falling knife knowing that the trend is clearly bearish and price flipping the previous support into resistance.
It's good to wait for a price break out that will confirm the trend is about to shift or some high time frame zones.
How low Bitcoin can go?
When the structure is bearish, You can expect the price continue to push down as long as it doesn't break the bearish structure.
Looking at the weekly chart, The first logical level i see is $69k-74k. It's the level that you can expect to act as support because it was previously a resistance. Just like $90k was a support and now acted as resistance. (Very basic charting pattern)
Now i am not saying price will go there and nor i am saying that zone will provide a bounce we are discussing the probabilities here.
BTC Monthly Zone
I also want to mention this monthly zone.
To be honest, As high timeframe chart is ticking down. I am ready for the worst case scenario.
I wouldn't be surprised if BTC drops under $70k and into $60's. When market starts to capitulate. It gives you unexpected prices. Obviously it's not going to happen overnight. It's a monthly/weekly analysis and will take weeks to play out but you have to keep an open mind.
I do not know which level will give us a reaction whether it's going to be weekly zone or the monthly zone but you have to be prepared psychologically and mentally for the worst case scenarios.
This is it for the $BTC update. I'll keep you updated if i see any changes.
I would love to read your thoughts as well, let me know what you think.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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