The recent recovery has been nothing more than a setback, before the continuation of the trend that has been imposed with the advance of the dreaded pandemic. Therefore, it is estimated that the price of Bitcoin is waiting for another fall.
To better understand the current situation, let’s review the charts of the price of the largest cryptocurrency, seeking to forecast its development in the near future.
Bitcoin Price Technical Analysis: Waiting for Drop
From the chart with weekly candles, the price continues to show good rejection of bearish prices, after reaching the surrounding support zone at USD 4,000.
This situation caused the attempt to break the SMA for 200 weeks to be invalidated, this being a positive sign for the medium term.
Nevertheless, as a result of a break in support at $ 6,500, the temporary trend turned bearish. This is supported by the EMA of 8 and SMA of 18 crossed to the downside.
For its part, the weekly RSI is currently bearish, due to its location below the 50 level.
In the daily time frame we can more easily observe the current descending structure.
The recent price rise towards USD 7,100 left a strong rejection of bullish prices, so it is possible that said movement has already been the search for the new structural point.
The move can already be considered as a valid pullback, thanks to the search for the 61.8% Fibonacci level. In addition to this, the corrective movement sought and respected the area of residence adjacent to USD 6,500.
Looking at it this way, the price is set to seek at least $ 4,000 in the coming days.
In case the bulls try to push the price a little higher, the area around USD 7,750 would be an excellent supply zone, capable of initiating the expected Bitcoin drop.
The indicators observed since this time period all support the time trend.
The EMA of 8 and SMA of 18 are working as excellent mobile resistances, in the midst of the pullback that the price is currently making. Meanwhile, the 200-day SMA is also bearish.
The RSI is still below the 50 level, supporting Bitcoin’s bearish view in the near term.
Seasonality by hours
From the 4-hour candle chart the outlook had changed momentarily as a result of a bullish break in the symmetric triangle charting formation.
This transition movement caused a valid succession of ever higher maxima.
Yesterday, the Bitcoin price made a validation pullback, which could initiate a move towards $ 7,750. However, the bears again obstructed the path and prevented the immediate continuation.
This situation caused the EMA of 8 and SMA of 18 4-hour periods to cross again to the downside.
The 200 SMA is also bearish, so all indications are that the most likely move is a further bearish transition from this timing, and the pursuit of at least $ 4,000.
Prediction: Bitcoin price is waiting for another drop
If the bears have taken control, it will be shown when they effectively break through the support at $ 6,000.
Otherwise, another bullish move towards $ 7,750 will be observed. However, it will only be the search for more bearish liquidity for the decline to continue.
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