Bitcoin has spent most of the past few weeks A painful lesson for the bull. The largest cryptocurrency by market capitalization has fallen more than 22% over the past month, tearing through support levels that many traders thought had been established.
Bitcoin is still trapped below the downtrend line and the current structure is still favorable to sellers Unless price can regain key resistance levels. However, technical analysis forecasts leave room for Bitcoin to recover if it falls. get out of A bearish trend begins and begins to build momentum above the confirmation level.
Bitcoin within a bearish 4-hour structure
Bitcoin 4-hour chart shows price fluctuations move inside Since hitting a high above $82,800 in May, the bearish structure has been forming lows and highs below the descending resistance line. The rebound from that high has sent Bitcoin below a weak low/liquidity. Sweeps at $66,000, And the destruction of the structure of the chart and the change in the text labels shows how control has passed from the buyer to the seller.
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This bullish case comes not from the confirmed reaction at $66,000, but from the possibility that Bitcoin can regain the structure lost after the recent collapse. However, if Bitcoin starts to push back above the confirmation area around $66,948 and then breaks above the downtrend line, this move could pave the way for a rise to the higher resistance level shown on the 4-hour chart below.
Bitcoin 4-hour chart. Source: TradingView
Targets stacked on top and their meanings
The trendline break, which coincided with a strong 4-hour close above a descending structure, does not immediately resolve the current bearish mood in which Bitcoin is trading. However, it will begin a move towards increasingly resistant price levels. change momentum Favors Bitcoin bulls.
A stronger bullish signal will only occur if Bitcoin breaks above the downtrend line. On the technical chart, this downtrend line is near $71,495, a level that could determine whether the recovery is strong enough to continue. Anything below that price range will be rejected. maintain bearish structure However, a full breakout above it could challenge the current trend and allow the bulls to push the price level higher.
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The next level is approximately $75,952. This is an intermediate resistance and breakdown level, meaning that if Bitcoin breaks through the resistance trend line, it could be the next big test. The highest and most important target in the current structure is around $79,453, where the major resistance and bearish control levels are located.
Beyond that, the premium supply zone and institutional sales area stretches from about $77,000 to just over $82,000. Therefore, according to the projection drawn on the chart, confirmed the break for The current bearish trend could send Bitcoin back to its May highs of $82,000, where it could face another test of resistance.
Featured image created by Dall.E, chart on Tradingview.com
