Bitcoin
Another drop and it’s over for King Coin?
Bitcoin is experiencing a short-term downward trend, with new signals on longer time frames worth paying attention to. In a recent video, Crypto World analyst Josh examined the 4-day Bitcoin chart and noted that despite the latest pullback, the Bollinger Bands are not expanding, indicating a highly volatile movement (20-30% range) has not been confirmed. yet. At the time of writing, Bitcoin is down four percent and is trading near $62K levels.
Josh said this he has repeatedly warned of a very bearish sign for Bitcoin and crypto, particularly with regards to the short-term trend and momentum.
Currently, Bitcoin is within a larger uptrend according to the Super Trend indicator over the 4-day period. This would change if Bitcoin fell below $56,000, potentially signaling the start of a bear market. Historically, even during bull markets, Bitcoin has suffered multiple pullbacks of more than 20%.
The analyst highlighted the importance of Bitcoin’s 3-day RSI, which has been a reliable indicator of buying opportunities during the bull market. When the RSI drops below 50, it has often preceded price recoveries.
The Bitcoin daily chart shows that Bitcoin has broken below the $63,000 support level, now finding short-term support around $60,000 to $61,000. If Bitcoin falls below $60,000, it could signal another drop, possibly into the $56,000 to $58,000 range.
It is crucial to consider different time frames. Short-term trends on the daily chart typically last from a few weeks to a few months, but they can occur within a broader uptrend. For example, we observe short-term bearish trends in the ongoing bull market.
Despite these short-term bearish signals, the analyst remains focused on the broader uptrend. He explained the importance of maintaining the $56,000 level to maintain the bull market structure.