Analysis: Bitcoin Headed To 2-Month Low

Bitcoin has fallen below $60,000, hitting a two-month low. Can the coin find support, or will it continue to fall? Let’s take a look at the charts.

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Bitcoin below $60,000

We start this analysis with a look at the daily chart. Here each candle represents 24 hours, which gives us a good idea of ​​the price. Here we see a red price zone that has been influencing the price for a long time.

There was hope that Bitcoin would move further into this ode zone and eventually recover, but that scenario is off the table. The coin did move further into the zone, but made a negative test (orange circle in the chart) and then moved below $60,000.

Such a negative test is usually a sign that the price would go down even further, as it means that there are a lot of sellers present at a crucial price level. So it was already likely that the price would go down from there, but not where this drop would stop.

Usually this happens at places that were important for the price before. In the chart above we see that the price already made a dive to around 56,500 dollars and bounced back up from there. This is the lowest point of Bitcoin in two months. If BTC drops to this point, it could provide support, but we don’t want to see the coin close below this.

Can the coin find support earlier?

There is also one other price point where Bitcoin is currently getting some support. This is less visible on the daily chart, so we will also zoom in on the 4-hour variant. Here, each candle represents 4 hours.

Here we see another low point that Bitcoin is currently bouncing back from. This is around a price of 58,400 dollars and can now provide support to prevent it from falling further. Despite the coin having given a great initial reaction, the price is currently moving back to this line.

The chance of recovery from here seems smaller than the low of the first image. In addition, price points on the ‘larger’ charts are more reliable than the small ones (like this 4-hour chart). It remains to be seen what the coin will do now and where it will find support. Hopefully it can go up again from there, but in general it is not good that the coin has made a negative test and has therefore fallen below 60,000 dollars. Bitcoin does not look strong because of this.

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