Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on Bitcoin (BTC).
Bitcoin Is Down
I entered a short order for Bitcoin because it seems the whales are not done dumping their assets.
Checking the daily time frame, Bitcoin had previously broken out of its downtrend pattern, but as of July 4th, it is back inside the downtrend. Despite my overall bias for Bitcoin, this prompted my short position to go up. We might have failed breakout levels, but it is too early to conclude.
It is important to base our trading decisions on charts, patterns, and numbers, not on manipulated interpretations and feelings. Traders must react to the market, acknowledging predictions are wrong because the market is always right.
We have two major support levels to watch ($57,000 – $58,000). If selling pressure continues and Bitcoin breaks the last line of defense, the next support levels will be significantly lower.
There’s also a suggestion of a bearish flag formation, with the potential outcome matching the size of the pole, aligning with the following support levels at $50,000 – $52,000.
If Bitcoin breaks through this last defense, be prepared for a significant drop. If this happens, I plan to buy more at these lower levels. This is a short technical analysis and discussion of Bitcoin’s current state.
Final Thoughts
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