Crypto
  • BTC
    21192.4 -1.07%
  • ETH
    1216.01 -1.51%
  • SOL
    39.98 -4.79%
  • ADA
    0.5 1.02%
  • AVAX
    20.21 -4.17%
  • DOT
    7.97 -1.39%
  • LTC
    57.78 -1.09%
  • BCH
    114.7 0.68%
  • DOGE
    0.07 7.28%
  • CRO
    0.13 -0.78%
  • MATIC
    0.58 -2.76%
  • LINK
    6.92 -3.98%
  • UNI
    5.63 0.86%
  • SHIB
    0 -1.78%

Rangebound movement coming for Bitcoin?

What usually happens after the falls is more of a range bound movement, not an immediate recovery. This applies for Bitcoin as well.

The technical analysis is usually well-balanced. If there is a lot of volatility at one time, it is followed by a period of lower volatility, bordering with boredom. If something pumps extremely, tremendous dump can be expected as well, so that everything is balanced.

This is one of the key understandings that everyone needs to have about the markets. Huge dumps are not usually followed immediately with huge pumps just like we saw in March 2020. Even if the retail traders wanted to “buy the dip” it hardly ever works out. In the most cases the market moves to the side after volatile movements.

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A look at the Bitcoin from the longer perspective

The daily chart of Bitcoin shows a stronger resistance and one can say that we are below an incredibly important level of 35 000 – 37 000 USD. In the current market conditions, I would not be very optimistic about breaking this level up.  

TradingView Chart

1D chart of Bitcoin, Source: Author’s analysis, tradingview.com

Is the shorterm bottom in?

The short term chart (4-hour chart) shows that we are range bound. After a strong fall, we are moving to the side. A lot of liquidity will be waiting for Bitcoin in the zone of 32 000 – 34 000 USD. Moreover, the CME shows a gap at around 35 000 USD. This shows that there might be some potential for an upward movement, but I would only expect us to get there with a wick now.

Looking at the longer term (for instance whole 2022), I do not think that we have bottomed and that there will be more downwards movement, maybe not in the coming days, but probably in weeks or  months.

TradingView Chart

4h chart of Bitcoin, Source: Author’s analysis, tradingview.com

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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