Crypto Daily: Bitcoin Has Negative Dynamics

Jul 02, 2021
10:07
2 min reading

Choise.com team

At the same time, the altcoin market fell even more. This can be judged based on the increased dominance of the first cryptocurrency, which now stands at 47%.

Let’s take a look at the chart of the first cryptocurrency and try to figure out what is happening on the market now:

Since June 26th, the chart has shown a significant increase, during which the price has risen 21%. As a result of this growth, Bitcoin broke through a strong downtrend and was even able to gain a foothold above it on the daily timeframe. However, a few days later, sellers pushed the price down 10% to the $33,000 level. Thus, the chart has again descended under the downtrend and is now moving along its borders.

During these movements, a head and shoulders reversal pattern formed. This is a negative scenario for Bitcoin and means that the likelihood of a fall has increased significantly again. In the current scenario, Bitcoin may again drop to $30,000 and even lower.

The indicators also provide absolutely no clarity. We do not see their discrepancies with the price chart on any timeframe. At the same time, it was especially interesting to look at the monthly timeframe:

Here you can see that Bitcoin has been in a downtrend for the last 3 months, as the candles are constantly falling and colored red. At the same time, the structure of the chart at the moment looks as if it is preparing for another small fall to the $30,000 area.

We stretched the Fibonacci grid onto the chart and it became clearly visible that the chart came to the 0.618 level. This is one of the strongest support levels in technical analysis for this pattern.

Indicators on the current timeframe continue to look strong. They still haven’t even halved after Bitcoin’s massive growth. At the same time, the price of the first cryptocurrency has already fallen by more than 2 times.

Summing up, it should be said that the probability of the first cryptocurrency falling to $30,000 is very high. If buyers fail to keep this level, then the price can fall significantly lower, up to $24,000. So far, it looks crazy, but we do not see how the chart reversal should occur. You can deposit your funds into a savings account and get the additional percentage, while the situation on the crypto market remains negative. All this is complicated by the summer period, during which many market participants traditionally refuse to trade and invest.