Crypto Daily: Bitcoin Keeps Dropping

Jul 16, 2021
06:07
2 min reading

Choise.com team

The market froze in anticipation of a new strong movement that will stir up investors. Let’s take a look at the Bitcoin chart and try to figure out where the chart is most likely to go:

There are still no significant changes on the chart. Bitcoin volatility continues to decline in the last 5 days and is only about 2%. Obviously, the chart is slowing down amid declining interest in the cryptocurrency market and a lack of liquidity in it.

The price is moving in a downtrend. Over the past 2 months, Bitcoin was only able to break through it from top to bottom once, but it did not succeed in gaining a foothold there. This turned out to be a false breakout. At the same time, in July, the price clearly moves around this line, approaches it, and then bounces down.

If you look closely at the chart and ignore the shadows of the candles, you can build a descending channel within which the price moves. Now it has descended to the middle line of the channel and has every chance of reaching the lower boundary, which is in the range of $28,000 – $30,000.

The same level is the last strong support for the chart. This became especially noticeable in the last two months when buyers were actively pushing the price upward when the price fell into this range. A similar situation occurred in early 2021st, when the price fell 32%, from $42,000 to $29,000. It is here that the further fate of the chart of the first cryptocurrency will be decided.

If buyers continue to behave this weakly, the price could drop to $24,000 and even lower. If we see a strong reaction from sellers when approaching $28,000, it will be a good sign, signaling a trend reversal.

Now, all we have to do is wait. The current market is contraindicated for active trading, and if you want to save your deposits, it is better to keep your funds in savings accountsandleave the market for a while.