The cryptocurrency market is falling sharply | When will it stop falling?
Just last week, the cryptocurrency market suffered a severe drop, with BTC falling by a full 15%. At present, the atmosphere of panic is pervasive, because the average altcoin market has fallen by more than 50% since its last peak.
Will the market continue to fall, or is the worst over? This is the core issue that this article will explore in depth. We will analyze the weekly chart of Bitcoin and predict the future direction based on my insights.
Before we dive into the current price action, let me recap the points I made in my last BTC update.
In my last Bitcoin update, I pointed out that BTC is performing like never before in the past 3 bull markets, and I mentioned that the $59-60,000 range is a key area for weekly bulls to hold on to.
Last week, we witnessed the price fall below $59,000, sliding all the way down to $53,600.
Now, let’s look at the charts and see what to expect next.
BTCUUSD (weekly)
Needless to say, Bitcoin has significantly fallen below the range it has been constructing over the past 16 weeks. As objective traders, we must face the reality that unless prices rebound and consolidate above $60,000, the weekly structure is broken.
What can we expect?
As long as the price fails to rebound successfully above $60,000 on a weekly close, you should be prepared for BTC to fall further. Looking at the weekly chart, the next nearby area is between $45,000 and $51,900.
If Bitcoin falls to this area, it may mean a great opportunity to slowly buy.
What if prices don’t fall?
For every trading plan, there is a failure threshold, just like this, if BTC returns above $60,000 and stabilizes. This may suggest that bears should no longer expect more declines and change their positions.
For example like this 👇
A weekly close back inside the breakout range would make this a false alarm and prices would gradually rise.
BTCUSD (Daily)
When higher timeframes are bearish, lower timeframes often offer bounces in between, especially when people are calling for a price drop. Whales take the opportunity to liquidate assets. After the weekly candle closes, numerous posts claim that people are expecting lower prices, and MMs usually tend to push the market in the opposite direction.
Looking at the daily chart, it is clear that the price has fallen below key daily support levels and I do not think the current market rally will be able to reverse the situation.
As long as this doesn’t happen, I will remain firmly on the bear side. I have no reason to be optimistic about BTC, after all, we know that there is a consolidation breakdown on a weekly basis.
I also mentioned ineffective planning. I will patiently wait for better trading opportunities based on the weekly scale.
I hope you find this update useful, and I’m eager to hear your thoughts on BTC. Please let me know what you think.