The current market situation is explained by Vladimir Kavetsky, an analyst at Nanny Ventures.
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Last week Bitcoin closed above $56,000, breaking the uptrend line and the support level. On the daily chart, prices reached the exponential moving averages at $52,000–$51,000, from which the decline was actively bought. But the probability of a downside remains if buyers fail to sustain above $58,000 in the coming days.
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One of the most obvious downside scenarios is a retest of the $60,000 level followed by new lows. Support levels for such scenarios are already in view — $47,500–$48,500 and $41,500–$39,000 (if the price cannot hold at the first threshold).
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Talk of an ATH can only occur with a sustained move above $60,000. The market picture is extremely unclear, and traders should take this factor into account when opening positions.
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On the 2- and 4-hour charts the picture is even more strained, with the price held above the local trendline and squeezed, with a possible breakout in either direction. Buy-the-dips persists, but securing a close above Monday’s POC — $57,000 — in the near term is highly important. The technical picture looks bearish.
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