In the bitcoin (BTC) update earlier today, it was read that the BTC price has fallen deeper again. Bitcoin is approaching a very important support† The picture does not look too good for the coming period, according to crypto trader Scott Melker, among others. What is Bitcoin currently like? You can read it in this market update.
Bitcoin price drops to lowest point in months
Looking at the hourly chart, we see that bitcoin continued to decline last night and thus a low of $34,201 reached on crypto exchange Coinbase. Here, BTC has continued to trade above for the rest of the day. However, when we zoom out we see that BTC is trading at a crucial point when we talk about the longer term.
On February 24, bitcoin briefly fell to $34,322, which was its lowest point since then. While a bounce is still possible in this area, it should be noted that the downward momentum has been quite strong in recent days† A further collapse is therefore certainly still possible.
In that case, the $32,000 could still provide support, its lowest point this year, with $30,000 below. For crypto trader LiBZ42, this is the “last line of defense.”
“BTC is now testing the lows of this range. Due to the fact that this is support and we haven’t tested this area too often, the chances of a bounce seem higher than not. However, if we lose this level, I have 30K in mind as ‘last line of defense’”
$BTC is now testing the very lows of this range. Because of the fact that this is support and we haven’t actually tested this area too many times, the probability of a bounce seems higher than not. However, if we lose this level I’ve got my eyes on 30K as ‘last line of defense’ pic.twitter.com/h8LIc2O5bD
— LiBZ42 (@LiBZ42) May 8, 2022
At the time of writing, bitcoin is trading for $34,342 on Coinbase. The bitcoin euro price on Bitvavo is €32,593.
6th red weekly bitcoin candle
Although a bounce in the short term remains possible with the reaching the bottom of this price range, as can be seen in the chart above, the longer term picture is still downright bad. On Coinbase’s weekly chart, it strongly appears that the candle will close in the red again for this week.
That is the sixth red candle in a row, something that has never happened on Coinbase in any case. And the fact that trading volume has continued to increase over the past few weeks, trader Scott Melker agrees certainly not feel free:
“Increasing volume with decreasing price = true bear trend. Volume confirms price. Question is – is this all capitulation volume or are we just getting started?”
In short, the bears really seem to be in control. Traders will therefore have to continue to pay close attention. Do you want to learn more about trading crypto, how crypto and blockchain work, or do you want to get in touch with analysts and crypto coaches? Then become a member of Crypto Insiders Premium and try the first 30 days for free! Because even in a bear market there are a lot of opportunities.