Yesterday we saw one of the biggest drops in recent times. In one day, Bitcoin lost 6% of its value, but then recovered a bit. How will this continue?
How is BTC doing?
To analyze this, let’s first look at the daily chart of Bitcoin. Here each candle represents 1 day, so that we can look far enough back into the price history. In this way, two price levels become clear that we have discussed before.
These levels are shown above as red and green zones. These are places where the price has responded in the past; as you can see BTC changed direction more often when the price landed here. It is therefore likely that this could happen again.
We just don’t hope that the prize will end up here anytime soon. This would mean a decrease of at least 23%. In addition, the price is still moving in an upward trend with higher and higher highs and higher and higher lows. Only when this pattern is broken is it likely that the currency will fall again.
Upward trend continues
So it is hoped that the currency can continue its upward momentum. To understand this a little better, we will now also take a look at the 4-hour chart. Here each candle represents 4 hours, so we can see the price in more detail. We also see a green line here that originates from a previous low.
As is immediately apparent, the coin has seen two declines in the past week. The first was even bigger than yesterday’s. However, altcoins did not react as strongly as last weekend. While the first decline was much steeper and faster.
Fortunately, in both declines we can notice that the uptrend is still intact. So in the long term we can remain positive. We would rather assume that the price will move to a new all-time high than that the currency will decline further from now on. However, it is important to keep an eye on this trend. A break at the bottom can be fast and powerful.
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