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Bitcoin is still falling. What to expect now?

This week was marked by a decline in cryptocurrencies. The first decline came on Monday due to the Chinese company Evergrande, which led to a decline not only in cryptocurrencies but in world markets in general. Today, bad news came again from China regarding the legality of transactions.

What you need to know

Trading and price development is a game of psychology. As you could clearly see this week, the emotions were up. In addition to the negative news, there were also some positive ones, for example, the one about Twitter. Be that as it may, nothing fundamental has changed on the chart and that is what matters. However, next time, if you see the confusion on the chart and do not know how to handle it, just switch to the daily chart to see the whole picture.

Now back to the daily chart at hand. We can see some key levels. As long as we keep support at $ 40,000 , we are still bullish. Overcoming this support would be very bad. According to Alessio Rastani, we can easily reach up to $ 37,000 without any serious ramifications. Overcoming this support, however, would be really negative. So from below, we are supported by $ 37,000 - $ 40,000 . As long as we keep above this level, everything is fine. As for the confirmation of the bull market, Bitcoin needs to clearly overcome the trend now. Once this happens we can continue to say that the trend will continue.

Once we create a higher HIGH and close above $ 52,800 , there is a huge chance that Bitcoin will go up to $ 80,000 - $ 100,000 .

Bitcoin daily chart Figure 1: Bitcoin on a daily chart

This is absolutely crucial at the moment. All movements in this range between support and trend serve only to confuse you.

And what about the 4H graph?

As for the 4H chart, it will become bullish once the price gets above the trend line. Until we are there, there is still the possibility to touch the support line by a wick. However, the main goal now is to maintain the support line at all costs.

Bitcoin 4H chart Figure 2: Bitcoin on a 4H chart

Conclusion

No need to be worried now. Trading is a game of emotions and institutions do their best to win it. However, you need to be smarter and not to play this game with them.

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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