Bitcoin is going down, the whole crypto market is going down, too. So, does this mean Bitcoin has entered a downtrend cycle? That is a million- or even billion -dollar question.
Let's analyze Bitcoin's two previous downtrends. The first correction wave dropped about 21.7%, and the second one dropped about 32.8%. If this pattern continues, the current correction wave could drop at least 32.8%; the latest Bitcoin's bearish candle is a little short of this amount.
Also, the previous horizontal resistance area, which is now a support area, coincides with the 32.8% drop value and the 0.5 and 0.618 Fib retracement levels, too. So, this area seems like a good place for Bitcoin's correction to end.
Moreover, the major uptrend line is the last line of defense for Bitcoin to keep the bullish phase alive. Let's see what happens.
Let's analyze Bitcoin's two previous downtrends. The first correction wave dropped about 21.7%, and the second one dropped about 32.8%. If this pattern continues, the current correction wave could drop at least 32.8%; the latest Bitcoin's bearish candle is a little short of this amount.
Also, the previous horizontal resistance area, which is now a support area, coincides with the 32.8% drop value and the 0.5 and 0.618 Fib retracement levels, too. So, this area seems like a good place for Bitcoin's correction to end.
Moreover, the major uptrend line is the last line of defense for Bitcoin to keep the bullish phase alive. Let's see what happens.
Note
Also, considering how long the two previous corrections lasted, Bitcoin still has 33 to 63 days (from this note's date) to reach level 1 of the Fib Time zone. See the two green vertical lines.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.