For the first time in 10 days, the price of Bitcoin dropped significantly overnight – by 4.9%. The market reacted negatively to this event and altcoins fell after Bitcoin. Bitcoin volatility for yesterday was $2,300, or 10% and this is a big indicator for the first cryptocurrency.
There was a big drop in the market yesterday, so let’s see what this might lead to?
Bitcoin has broken the rising wedge (green lines) down as we predicted yesterday. The price reached $22,000 and after that, we saw strong buying at these levels, which brought the price back to $23,000. This means that in the range of $21,800 – $22,000 there is now the nearest support level, which should be guided by.
At the top, we are limited by the resistance in the range of $24,000 – $24,300, from where we saw the price fall in previous times. Including yesterday’s fall also occurred from this zone.
The indicators turned into a downtrend and dropped quite low. Most likely, today we will see a reversal in them, which will correspond to a price increase in the $22,000 – $24,000 range.
Perhaps, in the first half of the day, we will see a decline to the nearest resistance, after which a new growth may begin.
In case of a breakout and consolidation above $24,000, we can expect a well-deserved jump in price up to $27,000. If the price breaks through $22,000 and gains a foothold there, then the price can easily drop to $20,000.
It is also necessary to take into account that this week there will be an expiration of annual bitcoin futures and this can turn the market in any direction. Therefore, it is very difficult and dangerous to say exactly where the price will go. Therefore, we suggest that you use the scripts above.