The recent downtrend of Bitcoin: A call to surrender or a call to arms
The recent woes of Bitcoin and the entire crypto market at large is common news right now, the entire crypto world was held to a standstill just after the Doge father (Elon Musk) tweeted that his company Tesla would no longer be using BTC as a medium of transaction for the purchase of their vehicles. Panic ensued and the market came crashing down, but enough with dramatics I would like to speak technically about the situation, because therein lies the crux of the matter.
The Bitcoin market had seen a ‘moon’ like rise from the end of last year into the New Year, creating an upward trend so steep that a massive correction was inevitable.
Like Dark side said ready the armada we would use the old ways….
The old ways here meaning technical analysis, as a staunch believer in market structure I would say the current downward trend is a much needed correction for the market, for better consolidation and future sustenance to the health of the Bitcoin market and the crypto market at large.
Another proof is that we actually have seen the sign of potential drop since May 11 when there was a confirmation of lower high structure as the validation of Head and shoulder pattern in the daily time frame. The confirmation of lower high and the right shoulder is the sign of losing momentum too. The higher time frame’s bias may not change and if you see it from the technical perspective, it’s legit and trusted.
For short term, I do think that bitcoin is actually testing the major support at around $44000 zone and bear is looking exhausted as of now. There is a support trend line forming which is in alignment with the major support. A bounce is likely, as the validation of the relief rally which can drive the price toward the upper resistance of $50000 or $55000. For longer term, it’s still unbiased and neutral. We can see the lower level push in the mid- long term price action toward the support 2 which is around $30000 or even lower if the price breaks below current major support zone.
So I ask again is it a call to surrender or a call to arms……..
NO it is a much needed weeding out of weak players, so hold fast for the night is dark and full of terrors.