Yesterday was negative for Bitcoin, as its price dropped below $50,000. The rest of the market followed Bitcoin. As a result, only a few coins from the Top-100 cryptocurrencies showed positive growth over yesterday.
The current decline took place at reduced volumes. Thus, the daily trading volume for Bitcoin amounted to $60 billion, which is 2.5 times less than during the fall on February 22nd. What to expect in the coming days from Bitcoin? Let’s figure it out.
The current Bitcoin fall has shown the weakness of buyers at the moment. The chart was unable to regain its 20% fall and did not consolidate above $50,000. The chart structure indicates that the price has entered a downtrend, and it is not yet clear how long this may last.
All indicators also indicate that the uptrend is weakening. The chart cannot break through the middle Bollinger line and fix above and constantly returns to the indicator’s lower border.
MACD also showed an extreme fall, and it is not yet clear how soon it will recover its values. This can be seen at the 4-hour and daily timeframes.
A similar picture can be seen on Stochastic, which fell very strongly on both the 4-hour and daily timeframes. Simultaneously, on the daily timeframe, the fall is not over yet, and there are no signs of a reversal. On the 4-hour timeframe, it is clearly seen that the indicator tops are declining, which indicates a negative scenario.
All this indicates that the fall is not over yet and may continue in the coming days. The main resistance level at the moment is the $41,000 — $42,500 range. Most likely, it is in this range that the Bitcoin price will come in the coming days.
It will also be essential to watch the close of the weekly candlestick. If it closes below $48,500, then the fall will continue, and the chart may break even the $40,000 level. In the coming days, it will become clearer whether this fall is a transition to a downtrend or if this is another correction in the market. Anyway, if you are not confident of its bounce-back movement, cash out your profit now.