BITCOIN COULD BE HEADING TO 65K NEXT ON WEEKLY! SHORT TERM CORRECTION FOR BTC FIRST?
Bitcoin broke under the support line – what’s next?
Bitcoin has made a bearish breakout of the upward support line. Immediate support is located at $ 6750.
The price is likely to remain within the rising wedge pattern.
Pure bearish wedge breakout could push the price back below $ 6,000.
Bitcoin peaked at $ 7,420 on April 8, but began a smooth pullback the next day. On April 10, the price made a bearish breakout of the upward support line, along which it has been moving since March 30.
The bitcoin (BTC) rate has been moving along the upward support line since March 30, but now the price has made a bearish breakout of this level, and with it – the support area of $ 7050. Now the nearest support is located at $ 6750.
The decline began immediately after the market formed a triple top on the April 6-8 charts.
This pattern is traditionally considered a bearish reversal pattern. If it appears after an uptrend period, it very often causes a trend reversal.
On a slightly longer timeframe, we cannot rule out the possibility that BTC is still trading within the rising wedge pattern. The price has remained within this pattern since it bottomed out on March 13th. It is currently trading directly in the area of the support line, so it is not yet clear if we can speak of a perfect bearish breakout or not yet..
If the breakout did take place, then Bitcoin appears to have completed the formation of the five-wave Elliott pattern. The bearish breakout theory is also supported by the gradual decline in trading volumes seen throughout the wedge pattern. However, the bearish breakout candle itself cannot boast of high volumes. In addition, the pair still needs to close below the support line.
In this regard, there is still a chance that the price will reverse and return inside the wedge, from where it will try to attack the $ 7800 level. However, in the end, bearish breakout still seems inevitable..
The same bearish pattern is emerging on the daily timeframe. Price bounced off the 50-day moving average (MA) and dipped below this year’s opening.
The market has reached the next important support and is now in the process of forming a bearish engulfing candle.
The close of day trading under $ 6,800 could trigger a precipitous decline that could push BTC back below $ 6,000.
Thus, the bitcoin rate made a bearish breakdown of the line of short-term upward support and is now trying to break the lower boundary of the long-term rising wedge pattern.
If he succeeds, a rapid price drawdown is likely in the direction of $ 5800.
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