Will Bitcoin Drop Again?

Bitcoin is having a hard time staying above $60,000, with market sentiment shifting every time the price moves up or down. In this article, we’ll analyze the weekly chart, as higher timeframes are the most effective tools for observing market volatility.

Before diving into the current situation, let’s revisit what I discussed in last week’s Bitcoin update.

Last Week’s Update:

In my previous update, I mentioned that despite a solid weekly close, Bitcoin was still below the $60,000–$61,000 zone. This created some uncertainty about whether to focus on the bullish candle or the key resistance zone. I personally decided to wait for a breakout above this level before making any decisions.

Now, let’s look at the current scenario.

BTC/USD (Weekly Chart):

The last weekly candle attempted to push higher but failed to hold above the previous support zone, which now acts as resistance. On the weekly chart, there’s no confirmation of an upward trend for Bitcoin unless it bounces back above this zone and holds.

BTC/USD (Daily Chart):

The recent upward move was likely a short squeeze, where market makers liquidated traders who shorted near the $50,000 level. Since then, the price has continued to struggle. Typically, a strong upward movement is sustained, as shown in the example below.

In summary, I’m currently staying on the sidelines because there isn’t a clear trade setup for Bitcoin right now. I’m waiting for the price to either break above the crucial $61,000 zone or for another dip to occur. At the moment, it’s a waiting game for me.

I hope this update was helpful. What are your thoughts on Bitcoin for this week?