Are we witnessing the bursting of a bubble?
Bitcoin broke below the critical support level at $59,313 and established a new low below $57,000. In doing so, Bitcoin fell through the lower bound of the downward-sloping channel, further bolstering a bearish case in the short term. In our opinion, it is possible we are witnessing the bursting of a bubble. However, more developments are needed to confirm this thesis; if true, it could have severe implications for Bitcoin and drag it as low as $32,000 over an extended period of weakness (similar to the one throughout 2022). Therefore, we voice a word of caution to investors.
Illustration 1.01
The image depicts the daily graph of BTCUSD. The yellow arrow indicates a bearish breakout below the critical support level.
Illustration 1.02
The illustration above shows the daily chart of BTCUSD and the downward-sloping channel. The yellow arrow indicates a bearish breakout below the channel’s lower bound.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
Illustration 1.01
The image depicts the daily graph of BTCUSD. The yellow arrow indicates a bearish breakout below the critical support level.
Illustration 1.02
The illustration above shows the daily chart of BTCUSD and the downward-sloping channel. The yellow arrow indicates a bearish breakout below the channel’s lower bound.
Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
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Disclaimer
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