The price of the Bitcoin correction is still continuing while it has dashed the hopes of $20K in 2020
BTC (Bitcoin) is said to be the world's first digitalized digital currency which many people have also known as the cryptocurrency. The value of bitcoin has always been unstable always. This is the primary reason why it is more popular amongst the traders the most. Talking further about its volatility, Bitcoin still continues to be in correction mode as the price of BTC has fallen below $17,600 which ideally is the lowest number ever noted since November.
Bitcoin in a downtrend on lower timeframes
Every Bitcoin rally ends well and starts with a corrective period. The correction, however, seems to have already begun with the price which is, for now, more than 10% since it has touched a new all-time high that was noted 10 days back. However, the recent news called the regulation of the crypto in the United States highlighted the fear to the euphoric market. However, there are also other markets that have suffered quite a lot this week with equities that seem to be cooling off. Here is the 4-hour chart that implies a clear downtrend which lower highs and lower lows.
The 4-hour chart of BTC/USD
As you can see there is a 4-hour chart that shows a downtrend clearly. Such kind of trend is confirmed with the low highs and lows which can be clearly seen in the chart.
If you can see clearly, the price of the Bitcoin could not break through the region of all-time high regions. Later, $18,500-18,700 was like a strong support area for at least a week.
In the arrow that is shown, you can clearly see the bounce that happened from the region. It is marked as the weak bounce in which there were low highs that were formed constantly.
Once the three tests were done, the support did not go well because of which there was a fall in the Bitcoin through to the next level of the support that was between $17,600-17,800.
The supported zone then started with a little bounce from$18,500-18,700. In order to be bullish, this zone needs to flip for gaining the support which it couldn’t. This rejection clearly showed the resistance flip in other tone is the bearish support post which there was a significant downtrend that resumed.
Overall, this shall be a downtrend that will post two highs and lows till the clear Bitcoin is diagnosed. However, it don’t really look that market shall discover sooner but the high time frames are also keen on turning south.
CBW - External Analyst