Bitcoin Weekly Chart – Source: Tradingview.com

Although last week started with the price of Bitcoin consolidating, the ultimate result was price action recording an extremely bearish week.

Price formed a high of around $4112 last Tuesday before depreciating over 10% for the week.

Bitcoin Daily Chart – Source: Tradingview.com

Price action has started this week with a rise from the low formed last week around $3476.

$3476 is now a key level to monitor, and if the price drops below this point, there is no clear support until the low of 2018 at $3122.

Last weeks performance from Bitcoin has resulted in many analysts having more bearish outlooks for cryptocurrencies.

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At the start of last week, there was a reasonable chance price could surpass $4240 and form a higher high.

This week, price action is firmly back in the downtrend territory of lower lows and lower highs.

Bitcoin 4-Hour Chart – Source: Tradingview.com

The 4-hour chart shows more clearly the high of last week at $4122 failing to surpass price actions former high near $4240. After some consolidation price broker down from here.

The first bearish drop was followed by a brief period of consolidation before another bearish drop took place.

This was followed by a longer period of consolidation with the price dropping to a low of $3476 yesterday.

Price began a recovery where it reached a price of $3586 but has since begun to consolidate between $3476 and $3586.

For the current price action, these are the key levels. However – the longer that price action trades consolidates within this range – the more likely the next significant movement will be a bearish one.

Key Takeaways:

  • Last week started off with markedly more bullish prospects with price holding a reasonable possibility of forming a new high. After failing to do so, price underwent a drop of over 10% for the week.
  • Price action has started off this week above last weeks low of $3476.
  • Price began a recovery where it reached $3586 but has since begun consolidating. Price underwent bearish movements after two periods of consolidation last week forming a bear flag pattern. The longer price consolidates currently, the more likely the next significant movement will be a drop.

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