Fairly Clear Bearish Trend seen in the Bitcoin Daily Chart Decisive Bounce at $6,500

The price of the Bitcoin moved towards key moving averages.  However, the bears seem to target $5,000.  There is a mid-term downtrend ongoing with BTC, and probably, the price is heading towards a 200-week moving average (MA), which is a level marked as a significant historical bottom.

Since 2019, when the high was at $13,890, the Bitcoin has seen several lower highs, which were indicative of a downward trend, at least for the mid-term.

In the past week, there was a correlative bounce.  Bitcoin was not able to shake off its larger downtrend, and the price was pulling back to $7,285.  The asset was eyeing $5,000, and the charts are looking mostly bearish in the current scenario.

The Bitcoin’s weekly chart supported $6,550 in the past week, going down the wick it created from May 2019.  Below this price level, the coin lacked the price support.  There was notable price action until 5,760.

There was significant price action for Bitcoin between $5,760 and $4,890 as the price zone for future support.  This support area coincided with the 200-week moving average near $4,990.  A major level of support was seen in the history of the Bitcoin, thus serving as the bottom price projectable for the asset in the current scenario.

If the Giant coin would break above the current 4-hour Ichimoku Cloud and sustain it as a support, Bitcoin might build a scenario that will lead to a future uptrend.  If the price swings high past the $7,900, this might indicate a downtrend.  The bullish trend might happen at least in the short-term. In the mid-term, there will be changing patterns, and past the downtrend, the momentum will push past its resistance levels at $8,000.

However, it has been time and again seen that the Bitcoin can change the sentiment and bias beyond what analysts have predicted.  When it was thought that all was over, Bitcoin would come up with favorable price action.  Thus this kind of volatility will eventually have Bitcoin find its ultimate bottom or catch up with a reversal.  Subsequently, the asset will move decisively from its present location.

Despite the current scenario, the HODLers are staying strong. Interesting to see that 11 million Bitcoins have not moved over the past year.  Thus, this is indicative that HODLers are not willing to sell whether the price is at the highs or the lows.

Marjory Lewis

Marjory is a science graduate with interest in new technological innovations. She has been attracted to blockchain from the very beginning and covers bitcoin and blockchain news for Bitcoin Journal.

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