The new week has not been kind to Bitcoin, as the price has experienced significant drops below key support levels. After failing to maintain its position above $71,000, the price has tumbled further below $67,000, indicating the beginning of a downward trend. Amid this uncertainty, a crypto analyst has identified important levels to watch as Bitcoin continues its descent, offering insights into the potential direction of the price.
According to analysis by Bitcoin Signals on the TradingView platform, Bitcoin has entered a consolidation phase on the 4-hour chart. This consolidation is occurring within the range of $67,000 and $72,000, with the price currently hovering around these levels. As a result, the analyst predicts a short-term correction is underway, leading to the recent drop in price. The BTC price has breached key support levels such as $69,200 and, on Tuesday morning, fell below $67,000 after breaking through the $67,200 support zone highlighted in the analysis.
The analyst also noted the formation of a falling wedge pattern during the breakdown, suggesting a potential breakout above the $69,200 resistance and a subsequent move towards $72,000. However, the price may continue to fluctuate within this range as the correction unfolds. Despite this, the analyst anticipates a further decline unless Bitcoin is able to surpass the $72,000 resistance level, based on the current market structure and price behavior following a clear breakout on the long-term chart.
Currently, selling pressure is dominating the Bitcoin market, resulting in a decline in price while witnessing an increase in major metrics. CoinMarketCap data shows that the daily trading volume of BTC has surged by 89.85% in the last day, indicating heightened selling activity rather than buying. Over the past 24 hours, the Bitcoin price has dropped by nearly 4% to around $66,700, erasing most of its gains from the previous week as the weekly chart depicts a 3% decline. This plunge has brought the price to its lowest level in June, reminiscent of the crash in May 2024.
In conclusion, Bitcoin has faced significant downward pressure in the current week, leading to a break below key support levels and a consolidation phase between $67,000 and $72,000. While a short-term correction is forming, a potential breakout from the falling wedge pattern could see the price aiming for the $72,000 resistance level. However, continued selling pressure suggests a further decline unless Bitcoin can overcome resistance at $72,000. As the market remains uncertain, traders and investors should closely monitor these important levels to determine the future direction of the Bitcoin price.
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