Bitcoin ended the first quarter of the year on a weak note, and this red quarter has several implications for the cryptocurrency. Despite calls for a bottom, digital assets appear to be far from actually reaching a bottom. There is also a possibility that the price of Bitcoin may eventually form a bearish pattern as the new quarter begins, which could mean that the cryptocurrency winter could last much longer than expected.
Bitcoin’s Weak Close and What It Means
Anonymous cryptocurrency analyst Ming explained what a bearish close actually means for the price of Bitcoin. According to the post, this move shows that the bears are actually leading and the potential for a further downside is still very much in play.
Instead, cryptocurrency analysts look at the Bitcoin price in the Higher Time Frame (HTF), focusing on the digital asset’s structure and the key levels investors should pay attention to. Taken together, this can point to where price may be headed next.
Crypto analysts say the key level is actually around $58,900. This is interesting because the Bitcoin price has yet to reach this low since the decline began, marking a monthly low. Therefore, whether the price reaches this level will be an important factor in determining where Bitcoin heads next.
What to expect if the bear breaks the line
As already mentioned above, $58,900 is the next important level for Bitcoin, so it is essential for the bulls to hold above this level while the bears try to push it down. If the price discount surges to $58,900, analysts predict further declines are expected.
Because if this level is broken, the Three Black Crows candlestick pattern is formed. This is historically bearish and will lead to a bearish candle. A drop of more than 30% could occur following previous performance.
However, if the Bitcoin price remains above this level after the crash, the price will be bullish. The analyst predicts that the cryptocurrency could eventually return to the $71,300-$74,400 level as a result. However, Minga explains, “There is still liquidity left in LTFs, so there is still a lot in play before another bearish retest of that area could lead to a continued downtrend.”
Featured image by Dall.E, chart by TradingView.com
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
