Introduction
The crypto market experienced significant turbulence last week, with Bitcoin ($BTC) leading the way by plummeting 15%. Fear has gripped investors, and altcoins have suffered an average decline of over 50% since their last peak. In this article, we'll delve into the current state of the market, focusing on Bitcoin's weekly chart.
Observations from Previous Updates
In my previous Bitcoin analysis, I highlighted unprecedented behavior in the current bull run. Additionally, I emphasized the critical support zone between $59,000 and $60,000 on the weekly scale.
Recent Price Action
Unfortunately, last week saw Bitcoin break below that crucial support zone, dropping to $53,600. Let's examine what lies ahead based on the charts.
Bitcoin Weekly Chart (BTCUSD)
- The structure on the weekly chart is undeniably broken.
- Unless we witness a price bounce back above $60,000 (and it holds), further downside for BTC is likely.
- The next significant support area lies between $45,000 and $51,900. Should Bitcoin dip into this zone, it could present an attractive buying opportunity.
Scenario if Price Doesn't Drop
- Every trade plan requires an invalidation level.
- If BTC manages to reclaim $60,000 and holds above it, bears should reconsider their bias.
- A weekly close back inside the previously broken range would signal a potential fake-out, and prices may start pushing higher.
Bitcoin Daily Chart (BTCUSD)
- Despite short-term bounces, the daily chart reveals that Bitcoin is trading below key daily support.
- The recent market rebound doesn't alter this bearish outlook.
- Until we see a convincing recovery, I remain cautious. There's no reason to be bullish on $BTC given the weekly consolidation breakdown.
Conclusion
Stay vigilant, observe price movements, and consider the weekly scale for better trading opportunities. Your thoughts on BTC are valuable—feel free to share them!
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Remember, this analysis is based on historical data and technical observations. Always conduct further research and consider other factors before making investment decisions. Let me know if you need any additional details or if there's anything else I can assist you with! 😊🚀
