On July 19, bitcoin (BTC) fell below the £23,008 horizontal support level, which has been there since May. A likely double bottom at £21,187 would be the next closest support level.
Since May 19, BTC has been trading in a range of £22,287 to £29,826. While it has occasionally dipped below the support level, it never closed below it on a daily basis. On Monday, it went below the area yet again, closing at £22,684, the lowest level since January.
Technical indicators are bearish, despite many unconfirmed positive divergences. The RSI and MACD are both decreasing, and the Stochastic oscillator has made a bearish cross and is moving lower as well. Trading volumes on the breakdown, on the other hand, have been minimal.
The key support area is at £19,896, according to the weekly timeframe. When looking at the overall upward action from March 2020, this is the 0.618 Fib retracement support level.
Since June 29, bitcoin (BTC) has been falling in tandem with a declining parallel channel. The channel has broken down as a result of yesterday’s drop. Furthermore, the price did not rebound at the £22,000 0.854 Fib retracement support area. A double bottom at £21,187 would be the next possible support.
The two-hour RSI is currently at 23, which indicates that it is very oversold. This is the weakest it has been since June 8, when it began a 30% upward trend.
Bitcoin is in a flat corrective structure, according to the wave count. Since June 28, the downward movement has been exceedingly choppy and slow, making a negative surge unlikely.
Because flat corrections frequently retrace to their entire extent, the possibility of a double bottom remains.
While the price crash has some investors sense a “crypto winter”, others believe the recent drop is only a price correction.