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.
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.
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.
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.
- 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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