Long Term
Bitcoin got rejected from the multi-month descending trendline after failing to sustain its bullish surge. It has also broken down the 50-Day moving average with significant negative momentum.
The cryptocurrency is now trading above the $35K support zone. From a technical perspective and because of the uncertainty in macro conditions, the market may stay in a ranging/consolidation phase for the mid-term. The $34K-$35K demand zone will be at the bottom of the mentioned range, while the $45K-$46K supply zone will be at the top.
Short Term
The price has broken the blue trendline, increased to the top of the range, and is retesting the trendline in the form of a pullback in the lower timeframes. There are two possibilities here:
BTC completes the pullback and moves towards the top of the range. To do so, it must first generate a higher high price action pattern, then consolidate before beginning the rally as seen in the green pattern.
Both the trendline and the support zone fail to keep the price above them, and bitcoin begins a new bearish rally to reach lower price levels. A massive long liquidation event is inevitable in this scenario, fueling the negative trend.
Bitcoin got rejected from the multi-month descending trendline after failing to sustain its bullish surge. It has also broken down the 50-Day moving average with significant negative momentum.
The cryptocurrency is now trading above the $35K support zone. From a technical perspective and because of the uncertainty in macro conditions, the market may stay in a ranging/consolidation phase for the mid-term. The $34K-$35K demand zone will be at the bottom of the mentioned range, while the $45K-$46K supply zone will be at the top.
Short Term
The price has broken the blue trendline, increased to the top of the range, and is retesting the trendline in the form of a pullback in the lower timeframes. There are two possibilities here:
BTC completes the pullback and moves towards the top of the range. To do so, it must first generate a higher high price action pattern, then consolidate before beginning the rally as seen in the green pattern.
Both the trendline and the support zone fail to keep the price above them, and bitcoin begins a new bearish rally to reach lower price levels. A massive long liquidation event is inevitable in this scenario, fueling the negative trend.