Bitcoin (BTC) continues to decline. Which you must have noticed. Respectively, this could not be overlooked, because the emotions are seriously known on social networks. It is already getting us into a state of hopelessness, when many investors are beginning to realize that they don’t really have a reason why they went to that market. Respectively, they didn’t understand it at all. And now they are running in panic.
In any case, the bitcoin dropped lower than I expected. More precisely, I was hoping that a solid reaction would take place very quickly at the May low. Which I am explained in Saturday’s video analysis. I mentioned that I want to see a quick test of the May low with a brisk pull to make the weekly candle look like the world. The low was almost tested, but no reaction. So the weekly candle looks pathetic.
Afternoon update:
Bitcoin and the entire financial market are still getting a scary set. On lower time frames, such as the watch, it can be seen that there are quite futile attempts at reflection. Attempts that are then quickly negated. I would say that the bears are already grinding and it is getting harder and harder for them to push the price lower. However, they are still riding overall. We will be happy if the price gets back to the May low at all.
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Current situation at 1W BTC / USD
As I said in the video analysis, I hoped that by the end of the week we would test the S / R level around 26,000 USD (Bitstamp), where hopefully there will be a quick stop. So then we should have a pretty decent weekly close. But it didn’t happen. Respectively, bitcoin tested the market minimum from May, but unfortunately the candle ended in a rather stupid form. I warned that this could happen too. But I was hoping for that positive development.
So the last weekly candle is absolutely terrifying. Its appearance is not good at all and I am debating how much influence it can have in the next few weeks. The truth is that the markets are now very oversold. Respectively, we clearly miss the growth wave there. If we didn’t count the weekly candles with the May 30 open, we have in a row of ten red weekly candles.
In any case, bitcoin is approaching other supports such as S/R level 23 500 USD a 200 weeks moving average. Note around the said price level and solid sharpness na volume profile. We just missed it at the previous level. In the video analysis, I stated that if the May low does not come out, said support confluence it should have withstood the impact.
In addition, the said 200-week moving average can be relied upon. Bitcoin came under it only in March 2020, but only for a very short time. I think the moving average will fall. However, it should not be that simple. Semi-pathically speaking, there should be a reflection. A reflection that could trigger a bearmarket rally.
Indicators
It is also worth mentioning that weekly RSI is the deepest since 2018. We are now under 30 points. That we would go down one litter? It is possible, but rather it is a factor indicating that the local bottom is behind the hummocks.
In conclusion
Bitcoin terribly simply broke that May low. So there is a fear that one will not fall into the trap for the second time as in testing the 30,000 USD. We have a real bear market here. And within a bearmarket, it’s logically easy to get trapped when you’re bulls.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as educational content on how to approach the market. Before you invest, do your own research and analysis, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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