Bitcoin has been declining for several days now. The coin was rejected at its previous high, indicating that the coin is in a downtrend. In addition, the market leader also seems to be having difficulty maintaining its support zone. Let’s look at the graphs.
Bitcoin’s Downtrend
We’ll start this analysis with a look at the daily chart. Here we see the price of Bitcoin, with each candle representing 24 hours. This gives us a good idea of the recent price action, along with BTC’s strongest price zones. At the moment, that red price zone is the most important.
This previously prevented the coin from falling below $60,000, but once it broke, we could rely less on this zone. It seemed like the coin still had a chance to recover as it moved back into the zone, but at this point a negative scenario seems more likely.
What is immediately noticeable is that Bitcoin has entered a downward trend (indicated by the orange arcs). The coin is making lower and lower highs and lower and lower lows, which is not a good sign. With this, Bitcoin has just moved below the red zone. And we didn’t want to see that for a positive follow-up.
Negative for the short term
The combination of the downward trend and the lost support creates an uncertain situation. And there is something negative when we look at the 4-hour chart. Here each candle represents 4 hours.
Here we see that the coin has not broken past its previous high either. This is shown with the blue line. As I mentioned in the previous analyses, this seemed to be the only hope for a positive price development in the short term. A higher high could ensure that the downward trend was not broken.
Unfortunately, Bitcoin has given in to this, and we may have to look for the next support. For that you would have to scroll up again for a moment, to the weekly graph. Here we see a blue line around the price of $53,000.
This is a spot where Bitcoin took a brief lull in its mega-surge, making it a logical point to find some support. Hopefully the currency can rise again from there – or BTC will have to pull some weird stunt – but in the meantime, the currency doesn’t look very strong (for the short term).
