The brand new week has been quite bearish for bitcoin, with the worth witnessing major crashes below multiple support levels. After losing its footing above $71,000, it has plunged further below $67,000, signaling the beginning of a downtrend. Amid the uncertainty, a crypto analyst has presented the necessary levels to observe as Bitcoin makes it descent, showing a possible direction for the worth.
Bitcoin Enters Sideways Consolidation
In an evaluation on the TradingView platform, crypto analyst Bitcoin Signals revealed some necessary developments for the Bitcoin price. The primary remark is the proven fact that the coin has entered a consolidation zone on the 4-hour chart. This consolidation is currently happening between $67,000 and $72,000, an area that the worth is currently skirting around.
Because of this of this development, the crypto analyst believes that short-term correction is forming for the cryptocurrency. That is behind the drop in price, and since then, the BTC price has broken down below necessary support levels resembling $69,200, and on Tuesday morning, bears were capable of pull the worth below $67,000 after breaking below the support zone of $67,200 identified by Bitcoin Signals within the evaluation.
The crypto analyst further identified that the worth could proceed to maneuver inside this range, which is where the correction is forming. Nonetheless, there was a falling wedge pattern that has been forming through the breakdown. In line with the analyst, this might see the Bitcoin price break out of the $69,200 resistance once more and make one other run for $72,000.
Based on the evaluation, the crypto analyst imagine that the worth could proceed to correct downward unless it’s capable of break resistance at $72,000. Bitcoin Signals based this on the “current market structure and price behavior following a transparent breakout on the long-term chart,” suggesting a continuation of the decline.
BTC Price On The Charts
Selling pressure is currently dominating the Bitcoin price, as evidenced by the direction of the cryptocurrency while seeing an uptick in major metrics. For instance, CoinMarketCap data shows that the each day trading volume of BTC is up 89.85% within the last day. Nonetheless, with the worth happening, it suggests that this increase in volume is being brought on by sellers relatively than buyers.
Within the last 24 hours, the Bitcoin price has seen an almost 4% decline in price, falling to the $66,700 territory. This has eliminated nearly all of its gains from last week because the weekly chart shows a 3% decline. It has fallen to its lowest level in June, putting it on par with the May 2024 crash.