Bitcoin is making lower lows and lower highs. This usually indicates the beginning of a further downward trend. Can the currency still recover in time? Let’s look at the graphs.
How is the coin doing?
We’ll start this analysis with a look at the daily chart. This gives us a good idea of the trend, while still being able to look at the strongest BTC price levels (shown as red and green zones).
As you can see, Bitcoin is slowly starting a downward movement. The coin is making lower and lower lows and lower highs. This makes it likely that the currency will fall further unless the currency can recover in the short term.
That chance is becoming increasingly smaller, since BTC has also already been below the red zone. This level previously prevented the coin from falling below $60,000. But since the coin has been down, we can’t rely on that as much anymore.
Hopefully we can leave the green zone for what it is for a while. This price level is so far from the current price that it is not relevant at the moment. However, it is always good to have these zones clear for the future, should the currency find its way back.
The short-term price
Bitcoin also appears to be rejected in the short term at an important price level (the blue line). We can see this less clearly on the daily chart, so we will also zoom in on the 4-hour chart. Here each candle represents 4 hours.
In the image above we clearly see how Bitcoin broke below the red zone, and from there found enough buyers to get back into the red zone. However, something is happening here that is important for the rest of the price trend: Bitcoin still does not make a higher high.
For this to happen, BTC needs to move past the blue line, but as you can see, this will not happen for a while. It is therefore a matter of waiting to see what Bitcoin will do from here to be able to talk positively about the price again. It would not be very surprising that – if Bitcoin does not rise above this price of $ 64,700 – it will then make a lower low again. Therefore, keep a close eye on this trend (and these price levels).
