Bitcoin is moving in a range. The price was rejected at the previous high and is now heading towards the bottom. Will the same thing happen here and the path turns 180 degrees?
To start with: scope. This is the range in which the bitcoin price is moving (yellow areas in the chart below). Bitcoin has been in the same territory for a month between about 40,000 and 46,000 euros. Since the drop exactly a month ago, not much excitement has happened the chapter. The fear was there with every little drop, but we haven’t seen any big moves from the market leader since then.
Bitcoin, as shown in the chart above, made a rally that entered the range. Then this top was tested twice. At these two higher peaks (shown in the blue circle), bitcoin was refused to move further higher. The result has been a steady decline to this day. Since Bitcoin hasn’t shown any sign of recovery yet and the price continues to fall, it might be best if the price first seeks €40,000.
The price could flip here again towards the other top of the range. When that happens, many investors will be happy, because further pullback is ruled out. The price will have to drop a bit to confirm this support.
It’s also good to zoom out, because with higher timeframes you see more. In the chart below, every candle is two days. The above graph is inside the blue circle, but has been zoomed out.
When Bitcoin loses its lowest local point of 40,000 euros, the first support will be very large. This can be seen as the large yellow area in the above chart. The price won’t drop through this quickly, because this area was very important last year. As you can see, it has acted as support and resistance many times.
This area starts around 36,500 euros. We’re talking about a worst-case scenario here. To do this, you must first break the band at the bottom. Don’t worry while we’re still in that range; This is just a fantasy in case the worst happens.
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