Bitcoin price is waiting for another decline
The recent recovery was nothing more than a setback to the continuation of the trend imposed as the dreaded pandemic continued. Therefore, it is estimated that Bitcoin’s price is waiting for a further decline.
To better understand the current situation, we review the charts of the price of the largest cryptocurrency and try to predict its development in the near future.
Technical analysis of the Bitcoin price: waiting for drop
The weekly candle chart shows that after reaching the surrounding support zone at USD 4,000, the price continues to show a good rejection of falling prices.
This situation resulted in the attempt to break the SMA for 200 weeks becoming invalid, which was a positive sign in the medium term.
However The temporary trend became bearish following a break in support at $ 6,500. This is supported by the EMA of 8 and the SMA of 18, which are crossed down.
The weekly RSI is currently bearish as it is below the 50 level.
In the daily time frame we can observe the current descending structure more easily.
The recent price hike towards USD 7,100 has led to a strong rejection of bullish prices, so it is possible that this move was already looking for the new structural point.
Thanks to the search for the Fibonacci level of 61.8%, the move can already be regarded as a valid withdrawal. In addition, the correction movement sought and respected the residential area in addition to USD 6,500.
If you look at it that way, the price will be at least $ 4,000 in the coming days.
In the event that the bulls try to push the price up a bit, the area around USD 7,750 would be an excellent supply zone that could trigger the expected bitcoin decline.
The indicators observed since this period all support the time trend.
The EMA of 8 and the SMA of 18 work as excellent mobile resistors amid the retreat the price is currently making. The 200-day SMA is now bearish.
The RSI is still below the 50 level and supports the bearish assessment of Bitcoin in the short term.
Seasonality by hours
Starting from the 4-hour candle chart, the outlook had temporarily changed due to a bullish break in the symmetrical triangle chart formation.
This transition movement caused a valid sequence of ever higher maxima.
Yesterday, the Bitcoin price made a validation pull that could trigger a move toward $ 7,750. However, the bears blocked the way again and prevented the immediate continuation.
This situation caused the EMA of 8 and the SMA of 18 4-hour periods to decline again.
The SMA out of 200 is bearish as well, so all signs suggest that the most likely step is a new bearish transition from that point in time and the search for at least $ 4,000.
Prediction: The Bitcoin price is waiting for a further decline
If the bears have taken control, this will be indicated when they effectively break the $ 6,000 support.
Otherwise, another upward trend towards USD 7,750 is observed. However, it will only be the search for more bearish liquidity for the decline to continue.
All of our publications are of an informative nature and should therefore never be used as investment advice.