Bitcoin Price Slips Below $61k: Another Drop And It’s Over For King Coin?
At the time of writing, Bitcoin is down by four percent and is trading close to $62k levels. Bitcoin is experiencing a short-term downward trend, with new signals on larger time frames that merit attention.
Market Analysis
In a recent video, analyst Josh of Crypto World examined the 4-day Bitcoin chart and noted that despite the latest pullback, the Bollinger Bands are not expanding, indicating that a highly volatile move (20-30% change) hasn’t been confirmed yet.
Josh said that he has been warning repeatedly about a very bearish signal for Bitcoin and crypto, particularly concerning the short-term trend and momentum. Currently, Bitcoin is within a larger bullish trend according to the Super Trend indicator on the 4-day time frame. This would change if Bitcoin drops below $56,000, potentially signaling the start of a bear market. Historically, even during bull markets, Bitcoin has seen multiple pullbacks of more than 20%.
Important Indicators
The analyst pointed out the importance of the 3-day Bitcoin RSI (Relative Strength Index), which has been a reliable indicator of buying opportunities during the bull market. When the RSI dips below 50, it has often preceded price recoveries.
Key Levels to Watch
The daily Bitcoin 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 to the $56,000 to $58,000 range.
Time Frames Matter
It’s crucial to consider different time frames. Short-term trends on the daily chart typically last from a few weeks to a few months but can occur within a larger bullish trend. For example, we’ve observed short-term bearish trends within the ongoing bull market.
Despite these short-term bearish signals, the analyst remains focused on the larger bullish trend. He explained the importance of holding the $56,000 level to maintain the bull market structure.
