Trend

The crypto market took a big hit last week $BTC It only had a 15% drop. Fear is now setting in as the Altcoins market has fallen over 50% on average since the last peak.

Will the market continue to fall or is the worst over? This is what we will discuss in this article. We will take a look at the weekly Bitcoin chart and see what we can expect based on my observation.

Before we dive into the current price action, let me share what I said in my last BTC update.

In my last Bitcoin update I mentioned that I haven't seen BTC doing what it is doing now in the last 3 bull runs. I also mentioned that the $59,000 to $60,000 zone will be a key area to hold for the bulls on a weekly basis.

Last week we saw the price break below $59,000 and drop to $53,600

Now let's take a look at what we can expect next based on the charts.

BTCUUSD (semanal)

Without a doubt, Bitcoin clearly broke below the range it was forming over the past 16 weeks. Not being a biased trader, we must accept that the weekly structure is broken unless we see the price bounce above $60,000 and hold.

What can we expect?

As long as we do not see the price rebound above $60,000 on the weekly close, you can expect more downsides from BTC. The next closet zone we have on the weekly chart is an area between $45k-$51900.

Bitcoin falling to this zone may represent a great opportunity to buy slowly if the zone hits.

What is the scenario if the price does not go down?

For every trading plan there is an invalidation level and that is if BTC goes back above $60,000 and stays there. This will probably indicate that the bears should not wait for further downsides and change their trend.

Let's say something like this. 👇

A weekly close back within the broken range will make this a false exit and the price will begin to rise.

$BTC

(diary)

When the high time frame is bearish, the lower time frames will always provide an intermediate bounce, specifically when everyone starts asking for a lower price. The whales take the opportunity to kill them. After the close of the weekly candle, there were several posts where people were asking for lower prices and it is always in MM's favor to take the market in the opposite direction.

If you look at the daily chart you can clearly see that the price is trading below the key daily support and this current bounce in the market does not change anything in my opinion.

As long as we don't see this happen, I'll be on the side of the bears. I have no reason to be optimistic $BTC knowing the fact that we have a weekly consolidation breakout.

I also mentioned the invalidation plan. I will wait for a better opportunity for the trader according to the weekly scale.

I hope you learned something from this update and I would also love to read your opinion on BTC. Let me know what you think.