BTC spilled over us last night. This in itself is not a big fall. Well, it depends on the view. In relative numbers, this is really not a drama. Drop did not surprise me, because the dollar index closed yesterday in a very strong form. A strong dollar index is simply bad for BTC.
BTC is likely to generate short-term declining lows and needs gain strength before overcoming ATH. The price is in a short-term correction and goes to the support zone. So let’s take a look at the potential movement of BTC and bearish scenario that could occur in the coming days.
BTC it has not yet created a declining low, but there has been a sharp rejection in the last rise. The closest the support zone ranges from $ 58,000 to $ 55,000. It is quite probable that the price will find support in this zone. We will primarily monitor the cessation of volatility and the reverse pattern 123 bottom formation.
BTC / USD 4H. Source: TradingViewBTC must maintain the previous maximum
The most bearish scenario that needs to be watched at the moment is on level $ 53,000. This point represents the previous long-term maximum that must be maintained. If the price fell below this maximum, rising the primary trend would be disrupted and refuted. For now, however, we need to monitor the above-mentioned support zone.
One of the reasons for rejection may be the fact that volumes on the bull side are missing. In addition, the market has recently seen a turnaround in holdings of LTH (long time holders), which began after six months distribute their coins. This indicator says that the bull market will end in a few months and that we are currently in the final bullish wave.
