Cryptocurrencies

Analysis: Bitcoin drops below $64,000, where will it stop?


Bitcoin has been on a decline in recent days. The coin has only made one green candle in the past week, and that is not positive. Can BTC bounce back soon, or is this the start of an extended down period? Let’s look at the graphs.

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Bitcoin back in red zone

We’ll start this analysis with a look at the daily chart. This gives us a good idea of ​​Bitcoin’s main price zone: the red zone between $62,000 and $67,000. The coin moved above this last week, but now Bitcoin is trading in the middle of this zone.

The coin ended up here after falling from a sideways move – we’ll get to this in a moment. The coin looked a lot better last week. Recapturing an important price level such as this red zone usually causes further upward movement.

This scenario became more realistic because the currency made higher highs and higher lows again after a longer period of time (the formula for a further upward trend). As you can see, the coin moved back below $62,000 a while back, but BTC recovered and came back into the red zone.

Course downwards

It was therefore likely that the currency could rise further. However, signs began to appear that the currency would move sideways for a while. We can see this better on the 4-hour chart. Here each candle represents 4 hours.

I’m talking about the blue lines in the graph above. These originate from a previous low and previous high, and as you could see, at first I was unable to get past either of these levels. The result is usually a temporary sideways movement.

Unfortunately, this has recently been exchanged for a short-term downside move. The coin has now fallen below the blue line of $ 66,300 and even tested negative (orange circle).

This does not necessarily have to mean something bad for the long term. As I mentioned in previous analyses, it is especially important that the currency remains in or above the red zone. The price therefore remains positive until the coin falls below 62,000 dollars. Therefore, keep a close eye on the graphs.

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