Analysis: Bitcoin rejected at $72,000, what next?

Bitcoin fell from a key price point yesterday. The coin tried to break past its previous high ($72,000) but without success. The price is now almost $2,000 below that rate. Let’s look at the graphs.

How is Bitcoin doing?

To get a good idea of ​​the trend and the most important price levels, we will first look at the daily chart. Here each candle represents 24 hours, allowing us to look far back in the price.

For example, we see orange arcs here, which indicate Bitcoin’s recent (downward) trend, but also a large red zone (from $62,000 to $67,000) that currently provides the greatest support. In addition, two blue lines have been drawn, we will come back to that in a moment.

When Bitcoin broke out of its downtrend by making a higher high, the price also entered the red zone again. This gave the coin enough strength to rise further, after which this price level was regained without any problems.

Since then, the price has remained somewhat stagnant, just above the red area. Every small drop into the red zone was bought up, and we even saw a strong increase towards the previous high ($72,000). If the currency broke here, we were in for a very good time – this would indicate a further upward trend.

The two blue lines

Unfortunately this is not the case. Bitcoin was rejected at this point and is currently falling further down. To analyze this better, let’s look at the 4-hour chart. Here each candle represents 4 hours, giving us a good idea of ​​the recent movements.

Here we can also see the two blue lines better. The top line originates from the previous high, and the lower blue line originates from the previous low. These price levels have been highlighted as Bitcoin has been rejected at the precise price of the previous high. This may indicate that the same thing is about to happen at the bottom.

In that case, we can wait a long time for a very exciting move from Bitcoin. The price will be able to move sideways between these levels for a longer period of time. A break of either of these two blue lines can signal the start of further movement in that direction. Therefore, keep a close eye on these price zones!