Watching Bitcoin - Downward Flow
Bitcoin continues to flow down in price since we witnessed the 10 and 50 day moving average cross on April 23rd. Ever since that event we've seen a lot of downward price movement and other bearish indicators pop up. That and some unwelcome news and tweets from Elon Musk have strengthened the bear looking position we see BTC in right now.
We've got a slight bear flag forming from the moves over the past month or so with a temporary support line looking to have established around $42,000 USD. The RSI is very low today which could trigger buying as believers will buy the dip!
Let's hope they turn out to push us out of this bear funk!
In general, things are definitely looking worse over the last several weeks, but there is a chance that we see a reversal as BTC dips to support lines. We could see a bounce if we dip below the $40k mark, if not we may fall as low as $30K before we see strong support.
A dip to $40K doesn't necessarily mean the end of this bull cycle. From the last all time high (of $65K) a fall down to $40K is almost exactly 38%... We had a number of drops in the 30% range during this bull run up to $65K.
Of course we could fall lower and if we break $40K without a significant and strong bounce up, the evidence will have been established that we just saw the end of the 2020 bull run.
Keep watching the charts! 📈
Please note : this is opinion and should not be taken as financial advice.