On the daily chart, we see a clear decline from the rising wedge. This slump had everything it needed to have. It was unexpected, had a strong volume, was sudden and immediately broke all key levels. Basically, within a week we got to -25% of the value. But how to grasp this analysis and is the decline finally over? Unfortunately, no one knows. The only thing we can do on the chart now is to mark the strong supports as follows:
- Support 44 974 USD
- Support 41 030 USD
- Support 29 800 USD
At this moment we are not even sure whether the fall has stopped, so we have nothing to base our analysis on. In order to do at least something, we need the price to stop and rebound. After that we need a higher minimum and higher maximum to appear. Only then will we be able to determine more.
As you can see from the chart, Bitcoin fell from $ 64,000 to $ 48,000. Overall, this is a drop of -25%. Be that as it may, this is not uncommon for cryptocurrencies. At this point, however, we are slowly approaching strong support, where I expect a response in the coming hours.
To be frank, I think that watching a 4H graph is not a completely correct approach right now, as we need to look at the market as a whole. For this reason, I would rather not analyze it further.
From my point of view, this decline could really be expected mainly due to the fact that Bitcoin has been growing in the last 6 months. The whole crypto market was growing and people were already getting extremely greedy. Regardless, I don’t think it should be the end of the bull-run, but rather its biggest current correction. All parameters confirm this statement. All we have to do now is give Bitcoin some time to recover and then we can analyze it further.