Is Bitcoins bearish wave still unfolding A new signal suggests 50k could be the next target
Bitcoin (BTC) is currently trying to maintain its position above the $57,000 mark, but a crypto analyst is cautioning investors to prepare for further correction. In a post on TradingView, analyst Alan Santana conducted a detailed analysis of Bitcoin’s current bearish trends, using volume indicators and price movements to support his findings. Santana focused on significant volume trends observed over the past few months. For example, on March 5, Bitcoin experienced its highest daily volume in years, but the session ended in a bearish close. This marked the beginning of a 111-day trend of decreasing volume, which was broken on June 24 with a volume breakout. However, the day still closed in the red, indicating strong selling pressure. On July 5, Bitcoin saw another high in daily trading volume, once again closing red and reinforcing the bearish sentiment. Santana’s analysis suggests that Bitcoin is trading within a descending channel, indicating a clear bearish trend. The upper and lower bounds of this channel have acted as resistance and support, respectively. Santana identified crucial support levels around $44,000 and resistance levels near $72,000. The analyst believes that if the bearish trend continues, Bitcoin may test the lower support levels. The volume indicators and recent price action suggest that bears have the upper hand, with selling pressure evident and a scarcity of buyers further strengthening the bearish outlook. As a result, Bitcoin could potentially reach the $50,000 mark and test lower support levels around $44,000. As of now, Bitcoin has recovered to trade at $57,190 after dropping to around $54,400 in the last 24 hours. However, the daily and weekly timeframes reflect the bearish sentiment, with a 0.25% and 9.5% decline, respectively. Over the past seven days, Bitcoin has been on a downtrend influenced by key events, including a significant Bitcoin transaction by the German government and the announcement of Mt. Gox repayments. Bitcoin has found strong support at $56,000 but has struggled to overcome resistance at $60,000. Investors should remain cautious and monitor these levels.
