The market introduction of the week has brought with it an ominous atmosphere for Bitcoin, which has had a swift and decisive downturn. Witnessing a steep and uncontrollable slide below its multiple support levels, the stalwart cryptocurrency had some footing above the $71,000 mark but brutally fell under the $67,000 point. This unexpected stumble appears to herald the beginning of a full-fledged downtrend. Compounding the ambiguity of this bearish fluctuation, a seasoned cryptocurrency analyst has posited a few significant thresholds to keep a keen eye on as the pioneer cryptocurrency embarks on its downward journey, thereby indicating a potential direction for the fluctuating price.
The cryptocurrency analyst affiliated with the TradingView platform, known as Bitcoin Signals, has uncovered a few noteworthy trends in Bitcoin’s price evolution. The initial interpretation from this analysis is the entry of the cryptocurrency into a consolidation phase as depicted on the 4-hour chart. This trend, where prices are confined to a specific range, has formed a jurisdiction between $67,000 and $72,000 with fluctuations dancing around this defined region.
In response to this prevailing market condition, the crypto-analyst has inferred that a short-term correction is shaping the journey of the cryptocurrency. This is portrayed through the precipitous fall in price; witnessed as Bitcoin’s price faintly crashed below critical support thresholds like $69,200. Sweating under the heat of early Tuesday, the relentless bears managed to drag the world’s foremost cryptocurrency under $67,000 as it clumsily broke through the $67,200 support zone, explicitly identified by Bitcoin Signals.
However, the crypto analyst mitigated the looming pessimism by shedding light on a potential positive outcome of the sideways consolidation. A falling wedge pattern has been spotted through the tumultuous breakdown, suggesting that there is room for rallying. It implies that Bitcoin might break the shackles of $69,200 resistance and make a bullish run, flirting with the $72,000 mark.
Inferring from this analysis, Bitcoin Signals anticipates that the cryptocurrency may continue to reconcile unless a rallying force manages to shatter the resistance at $72,000. This assumption is based on the current market dynamics and the subsequent behavior of the price after the formal breakout on the long-term chart, indicating a prolonged downturn.
As per the current scenario, sellers are flexing their muscles by exerting pressure on Bitcoin’s price as the trading volume reveals an 89.85% surge in the past day according to CoinMarketCap. However, the downwards trajectory of the price hints that the increased volume maybe more due to sellers than buyers.
Experiencing a dip of almost 4% in the last 24 hours, the Bitcoin price has surrendered to a dismal $66,700 value, eradicating most of its prior week’s gains. Its present abysmal phase mirrors the notorious May 2024 crash, as it kneels at its lowest point since June, thereby raising speculations about the imminent future of this digital titan.
