The new week has been quite bearish for bitcoin, with the price witnessing major declines below multiple support levels. After losing its footing above $71,000, it has plunged further below $67,000, signaling the start of a downtrend. Amid the uncertainty, a crypto analyst has laid out the important levels to watch as bitcoin declines, showing a possible direction for the price.
bitcoin enters sideways consolidation
In an analysis on the TradingView platform, crypto analyst bitcoin Signals revealed some important developments for the price of bitcoin. The first observation is the fact that the currency has entered a consolidation zone on the 4-hour chart. This consolidation is currently occurring between $67,000 and $72,000, an area that the price is currently skirting.
As a result of this development, the crypto analyst believes that a short-term correction is forming for the cryptocurrency. This is behind the price drop and btc price has since crashed below important support levels such as $69,200, and on Tuesday morning, the bears were able to push the price below $67,000 after break below the $67,200 support zone identified by bitcoin Signals in the analysis.
The crypto analyst further noted that the price could continue to move within this range, which is where the correction is forming. However, a falling wedge pattern has been forming through the breakout. According to the analyst, this could cause bitcoin price to break the $69,200 resistance once again and make another run towards $72,000.
Based on the analysis, the crypto analyst believes that the price could continue to correct lower unless it is able to break the $72,000 resistance. bitcoin Signals based this on the “current market structure and price action following a clear breakout on the long-term chart,” suggesting a continuation of the decline.
btc price on charts
Selling pressure is currently dominating the price of bitcoin, as evidenced by the cryptocurrency's direction, while a rally is seen in major metrics. For example, data from CoinMarketCap shows that btc daily trading volume increased by 89.85% in the last day. However, with the price falling, it suggests that this increase in volume is being caused by the sellers and not the buyers.
In the last 24 hours, the price of bitcoin has seen a drop of almost 4%, falling to the $66,700 territory. This wiped out most of its gains from last week as the weekly chart shows a 3% drop. It has fallen to its lowest level in June, putting it on par with the drop in May 2024.
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