The current Bitcoin situation is quite bleak as it continues to show persistent weakness and instability around the current levels. Bitco...
The current Bitcoin situation is quite bleak as it continues to show persistent weakness and instability around the current levels.
Bitcoin has been consolidating since September 26, when it formed the bottom of the current range after repeatedly breaking support levels from the $ 10,000 area. A downtrend has been triggered after Bitcoin committed the above behavior. Although there were a few moments when BTC shot back and seemed to have eliminated that downtrend. But right now, Bitcoin seems to be getting weaker. Now, we will consider the scenario of another incident.
We started on the 12-hour chart and found that getting rid of the bottom of this local structure did not make much progress. The fall broke 9 EMA after trying to turn around for a short time. This attempt still did not generate enough volume to push Bitcoin above $ 8,400.
The chart also clearly shows that Bitcoin is ready to return to the negative zone of the range.
Turning to 4 o'clock, we see Bitcoin has broken an important cross trend line. This happened on September 30 and the bulls stepped in to push BTC back to a safe level. And to prevent another similar decline, the bulls need to attract stronger buying.
The MACD has overcome the downtrend on this chart, although the trading period has not ended. The same story happens on the histogram chart: MACD is also crossing the negative level with an downward arc.
Finally, on the daily chart, we see a weak pullback from top to bottom as the bounce has failed to break through 0.236. This shows further weakness. It makes everything basically look like bears will dominate in the upcoming trend.
If we see a further lower leg, the next major support will be around $ 7,000, with the next possible drop to be $ 6,400.
But despite its weakness, the bear flag structure has not yet been broken, at the time of writing. There is still a chance for an off-shore buying support to push Bitcoin higher. But bitcoin is currently in short supply and it would not be surprising to see another round of declines.
Source: synthesis
Compiled and translated by Hightechbrain.com
Mr. Nerd
