Bearish movements near the end of last week resulted in Bitcoin forming a new 2018 low on Friday around $3200. Price managed to record bullish movements over the weekend moving back up above $3600. The start to this week has seen a return to bearish price action with Bitcoin price currently trading around $3450.
The outlook remains extremely bearish. The more bullish movements recorded over the weekend likely served to form a lower high and will likely result in the price of Bitcoin dropping even lower than $3200 on its next significant decline. The key level to monitor for Bitcoin price is $3000. This is an area of both significant trading activity last year and a key psychological point for traders.
While market conditions remain bearish, the downward movements have started to slow down. The initial bearish spark brought the price of Bitcoin from $6400 to $3900 over the space of just two weeks, an almost 40% decline.
The past two weeks which have followed the initial bearish movement resulted in price moving from $3900 to $3500, a significant slowdown in depreciation. Traders are likely to be fearful given the sharp declines but are also likely considering the current price a potentially attractive entry point. The weekly chart shows that the momentum remains with the sellers with both the MACD and RSI decreasing. The volume on the drops has also been high showing significant strength behind the declines.
- Bitcoin forms new 2018 low on Friday but undergoes recovery over the weekend with the price rising above $3600 yesterday.
- The recovery is likely to have formed a lower high for price action, and the next significant downward move may likely form a new 2018 low.
- The key level to monitor for Bitcoin is $3000.
- Market conditions remain extremely bearish with seller momentum strong on the weekly chart.
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