Bitcoin (BTC) rebounded up to 14% after plunging a four -month hollow almost $ 76,600 on March 11. But the price of the BTC is down approximately 25% compared to its record summit of around $ 110,000, which is normal for a “bull market correction”.
However, some analysts provide that the price of bitcoin is decreasing to continue in the future.
“Dark Cloud” suggests that Bitcoin is in the lead
Bitcoin faces a renewed lower pressure after having rejected $ 87,470, the descending descending resistance, with a model of “dark cloud cover” strengthening the downward trend, according to an analysis shared by GDXTRAD on X.
BTC / USD Daily price that. Source: tradingView / @ gdxtrader
The pattern of dark cloud cover occurs when a strong green candle is followed by a red candle which opens above the previous closure but closes under the middle of the body of the first candle.
Illustration of a dark cloud cover. Source: Goldeneye analysis
Such a change in feeling indicates that buyers tried to push higher but were mastered by the sellers, often leading to a new drop.
The non-compliance with Bitcoin to close in the resistance zone from $ 90,000 to $ 93,000 suggests a lack of purchase conviction, noted Gdxtrader, saying that cryptocurrency will remain under down pressure unless it breaks decisively above said beach.
BTC Price “Perfect rejection” risk $ 65,000
The Bitcoin potential to be refused more results from its “perfect rejection” after having tested the area from 86,000 to $ 88,000 as resistance, according to the analysis of the Popular Creptibull Trader.
In relation: Here is why the price of Bitcoin cannot go more than $ 87.5,000
In particular, Bitcoin tried to break towards the local supply area marked in red but failed to maintain above the said resistance zone, illustrated by the orange circle in the graph below.
BTC / USD Table Hordure Heux. Source: TradingView / Credibull Crypto
Failure to comply with the supply area has increased the probability of a drop to support levels of less than $ 77,000 to $ 79,000 (highlighted in green) by March. The test of this area as a support led to net price rebounds in March.
However, if this support zone breaks, a deeper movement below the region from $ 77,000 to $ 79,000 could extend to the zone from $ 65,000 to $ 74,000 – the largest green liquidity area in the above graph – in April.
Analyst George shared a similar perspective, as indicated below.
Source: George1Trader / X
“Difficult to remain optimistic” with a bear flag motif
According to the Cryptopus analyst, Bitcoin remains closely correlated with traditional equity markets, in particular the S&P 500 (SPX) and the NASDAQ 100 (NDX), which both displayed sea flag models on graphics.
A bear flag is formed when the price is consolidated above inside an ascending parallel channel. It solves if the price breaks below the lower trend line and falls as much as the height of the previous decrease trend.
Source: Cryptopus
BTC follows a similar bear flag structure, with $ 84,000 acting as the lower trend line support. A break below this threshold could trigger a deeper sale at $ 72,000 by the technical rule explained above.
In addition, the correlation of Bitcoin with the actions has increased due to a broader drop in the feeling of risk, led by the World War of US President Donald Trump.
BTC / USD and Nasdaq composite correlation at 30 days. Source: tradingView
Arthur Breitman, the co-founder of Tezos, qualified the American recession for us one of the largest external risks in the crypto market.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
