4.2 Bitcoin suddenly plummeted! Where is the next support level? Is it a crash or an opportunity to get on board?
Yesterday, we saw that the Bitcoin price rebounded at the bottom of the short-term box. We believe that we can expect the price to continue to break through the box upwards. We also believe that a better entry opportunity will be after the breakout and callback.
However, the price did not show a trend of breaking through the box at all. Instead, it did not take long for the price to directly show a rapid downward trend. At noon yesterday, it suddenly fell to the bottom of the range. Although Bitcoin was still inside the box, Many altcoins have fallen a lot.
The subsequent price showed a slight rebound trend at the bottom of the box, but it did not take long for the price to continue to fall, falling below the previous low, which was considered to have broken through this short-term shock range.
Then in the early morning of today, the price returned to the box, but just now, the price broke through the support level again, and then immediately began a rapid downward trend, with the lowest falling to around 65,500.
From a four-hour perspective, after the price falls below the previous shock range, the next support target point should be around 62000, which is the previous low. This is the horizontal support position.
Looking at the daily level, as shown in the figure, the price is likely to form a triangular convergence pattern at the daily level. The position where the price was blocked in the short term and then fluctuated sideways for a long time is just in line with the top of this triangular convergence pattern. near the trend line.
Then we can also predict that the price will reach the bottom of the triangle convergence pattern, which is probably around 62,000, which means that judging from the daily pattern, the price is very likely to have a major correction.
If the price follows the triangle convergence pattern at the daily level, it will definitely break through the triangle convergence pattern in the end. At present, I still think that after the price breaks through the triangle convergence pattern, it will continue to continue its upward trend, continuing from around 40,000. As shown in the figure, it is highly likely that the market will continue to continue the original trend after sufficient correction and adjustment. Generally speaking, the reversal will not be that fast unless the triangle convergence pattern is really downward in the end. If there is a breakthrough, we will study and analyze it when the time comes!
