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Bitcoin Friday: Technical Analysis of Bitcoin

In the last week’s analysis, we addressed how the chart will continue to move after a crushing slump. Today we are a little wiser.

Daily chart

On the daily chart, we basically have 2 options. In terms of probability, it is about 55% for decline and 45% for growth. As for the triangle formation, it is more probable that the triangle will follow a movement in a given direction. This means that since the last direction was downwards, there is a slightly greater chance of a downward direction. However, I personally have experienced that after a triangle formation had been formed on Bitcoin’s absolute bottom, the price went up nevertheless. Needless to say, it was a bitter experience.

Bitcoin technical analysis on a daily chart Chart 1: Technical analysis of the Bitcoin on a daily chart

4H chart

On the 4H chart, we see a perfectly symmetric triangle. Yesterday there was a strong promise of a downward breakdown at night, however, 3 key events happened. It was precisely these events that led to the rejection in the market.

1) Bitcoin could not break through the mentioned triangle formation on all crypto exchanges. On some of them, everything was pointing towards a breakout, but overall we cannot say that this was the case on all of them.

2) That night, classic markets also fell, probably due to the dollar index. S&P500, Nasdaq, Gold, and Silver market also fell.

3) And the last straw was a tweet by none other than E. Musk who expressed his negative stance towards Bitcoin once again. However, I dare say that Elon’s tweet has only accelerated the decline, but it was not the cause of it.

Technical analysis of Bitcoin on a 4H chart Chart 2: Technical analysis of the Bitcoin on a 4H chart

Conclusion

Bitcoin is experiencing harder times. While a few weeks ago the price has already been attacking 65,000 USD, today it is a whole other story with price level oscillating around 35 000 USD. Of course, many newcomers bought at higher prices and therefore are currently at a loss. The coming days and weeks will be crucial for Bitcoin, but I do not think this bull-run is over.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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