Bitcoin was around $82k when we discussed it last week and then price dropped under $77k. Does that changed anything? This is what we will discuss in today’s update.
BTCUSD (Weekly)
As it’s an weekly update so we will start from the weekly chart.
Bitcoin broke it’s weekly structure last week and keeping it straight forward as long as price doesn’t reclaim this broken zone. it’s still a bearish chart to me does not really matter how many bounces are coming on small timeframes. It’s weekly chart and obviously it will take weeks to play out.
Let me take you back to some bullish breakouts so that you know why it’s important to pay attention to this break down.
BTC $30K Breakout
BTC 70k – 72k Breakout
Since the $16k bottom $BTC had two consolidations that ended up breaking to the upside and each breakout provided continuation higher.
BTC CONSOLIDATION BREAKDOWN
Now this was the 3rd consolidation within this whole uptrend that ended up breaking to the downside.
Remember that it’s the first break down since $16k. This is why i am saying, you should pay attention to it.
What To Expect?
The weekly chart is standing in-between two important zones. As the price is sitting below the broken zone. As long as you don’t see it reclaim this zone you can expect some more downside from it. it May take days or weeks to play out but that doesn’t really matter. The only thing that matters is if the chart shifted its trend or not.
So based on the weekly chart there are only two options.
- Either price reclaim this broken zone so you can target new all time highs and beyond.
- Or price continues to go into trend and gives you some lower prices.
BTCUSD (DAILY)
Daily chart is struggling to hold above $85k ish. As long as price is below that there is nothing good even on the daily chart.
Just in case if price breaks and hold above $85k this is something that you can expect on lower timeframe
This can liquidate some more shorts on $BTC But will change nothing on high timeframe.
This is it for this week’s update on Bitcoin. if i see anything changed i will keep you guys updated. My focus is on high timeframe structure and i will continue to ignore what is happening on small timeframe.
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