Bitcoin Price Took Investors On A Crazy Ride This Weekend, Now What?
The price of Bitcoin, and the cryptocurrency sector in general, has been taking a major plunge. In these exceptional times, it's important to remain objective and stay focused on the price action of the sector and assets you're invested in. Therefore, a zoom out is always warranted to see how the recent move fits into the big picture. Today, we will cover the price action of Bitcoin, the original cryptocurrency that started it all.
Bitcoin Price Daily Chart
After making a double top in 2021, Bitcoin came back to back-test the previous support area at the $30 thousand level, only to get rejected from there. Between the month of April and May 2022, the price was trying to make a reversal. The setup ended up becoming a bear flag that broke to the downside.
After this Saturday’s capitulation, the target price of that bear flag was hit. We expect a bounce at the pink trendline. But as the price bounces from here, there will be some crucial resistance levels to watch.
It will be important to assess how the price is reacting at those levels to understand if the price can continue to move upwards, or if the relief rally will be rejected from those levels. That’s what the InvestingHaven Blockchain team will be tracking in the next few days.
Bitcoin’s Monthly Chart is Still in a Long-Term Uptrend
When things are moving fast, it is usually a good exercise to zoom out. That is exactly the point of the monthly chart below. We can see an incredible uptrend, one that has been spanning through seven years. Even that 'Crypto Winter' from 2018 looks like a nice, buyable pullback. That is the power of zooming out and using a logarithmic chart from time to time to tune out the noise.
The monthly chart also shows a lot of support in these areas:
- Horizontal support levels.
- Previous major tops.
- Important psychological price levels that are likely to hold.
Keep in mind that what we are probably seeing this weekend is the impact of heavy and likely unreasonable leverage on a relatively small and budding sector. Cryptocurrencies are here to stay, same for NFTs, but only the strongest will survive. Time will tell.
This text was written by hdcharting, and reviewed by Taki Tsaklanos.
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