Cryptocurrency Analysis: Bitcoin drops 5%, will it return to $38,000? -Blox

It’s been a long time since people woke up to that red Bitcoin price. The coin fell more than 5% overnight from its resistance at around $45,000. Will the coin rise again from here, or is it also possible that the price will perform less well in the coming days? Let’s take a look at the charts.

Bad start to the week

To start, let’s take a look at the weekly chart. Shown here are two levels in green that were important in price history. The upper area is the most important right now, and I have to make a small comment about that.

In previous analyzes I indicated that the resistance could be a little higher, but it turns out that this is not the case. Bitcoin has already had difficulty reaching $45,000. As a result, the coin has now fallen to a price of $40,400.

Bitcoin could still go higher and hit resistance at the previous point I mentioned (about $45,500 – $500 away from current resistance). But this scenario now seems as likely as a further decline. The coin is located exactly between the two green areas, which makes predicting the next direction more difficult.

The lower area is a logical point of support. The currency previously encountered resistance here, but after the break, buy orders were placed in this area (instead of sell orders). So this is likely a good point to make a higher low. This can be best seen on the daily chart below.

Are we going to cut an additional 10%?

The only problem with this is that the coin could fall an additional 10% towards $38,000 before rising. This presents opportunities for people who still want to invest in Bitcoin – if the price gets here and then rises – but for HODLers, this scenario is less fun.

However, such a movement does not necessarily have to occur. Bitcoin cannot always rise or fall in a straight line. A correction from time to time is normal in the cryptocurrency market and this could be the decline; Bitcoin has surprised us before.

It is therefore important to monitor these two areas, as they have had an impact in the past. Overall, Bitcoin looks good in the long term. The price is still making higher highs and higher lows on the weekly chart, but in the coming days the price looks uncertain – especially between these two areas.