Analysis: Bitcoin on track for 2-month low – BLOX

Bitcoin has dropped below $60,000, hitting its lowest level in two months. Can the coin find support or will the price continue to fall? Let’s take a look at the charts.

Bitcoin under $60,000

We will start this analysis by looking at the daily chart. Here each candle represents 24 hours, which gives us a good idea of ​​the price. Here we see a red price zone that has been influencing the price for a long time.

There was hope that Bitcoin would move further into this poem area and eventually recover, but this scenario is unlikely. The coin moved further into the area, but made a negative test (orange circle in the chart) and then moved below $60,000.

Such a negative test is usually a harbinger of further decline, as it means that there are many sellers present at a crucial price level. So it was already likely that the price would decline from there, but it was not clear where this decline would stop.

This usually happens in places that were previously important for the rally. In the chart above, we see that the price previously dropped to around $56,500 and then bounced back from there. This is the lowest point for Bitcoin in two months. If Bitcoin drops to this level, it could provide support, but we don’t want to see the currency close below.

Can the currency find support soon?

Additionally, there is another price point that Bitcoin is currently receiving some support from. We can see this less clearly on the daily chart, which is why we will also zoom in to the 4-hour chart. Here each candle represents 4 hours.

Here we see another low that Bitcoin is currently bouncing off of. This is around $58,400 and could now provide support to prevent it from falling further. Although the coin gave an excellent initial reaction, the price is currently moving towards this line.

The chance of a recovery from here seems less than the bottom of the first image. In addition, price points on “larger” charts are more reliable than small ones (like this 4-hour chart). It remains to be seen what the coin will do next and where it will find support. Hopefully it can rally again from there, but overall it is not good that the coin made a negative test and thus dropped below $60k. So Bitcoin does not look strong.