The sky is falling in for Bitcoin (BTC), and who knows how bad this crash is going to be. Where could Bitcoin bounce, and is this just the beginning of a slide into the bear market?
Panic is flooding through the crypto market. Bitcoin has fallen out of its wedge pattern, and has fallen through the major ascending trendline. Very little volume is there for a possible bounce, and a vertiginous fall awaits that could take the price all the way down to the low $70K region.
All is not well in the world of Bitcoin. The U.S. Spot Bitcoin ETFs just recorded the 5th worst outflow day since their inception, with a net outflow of 5.37K BTC, equivalent to $516.40 million. This comes after Strategy (formerly Microstrategy) announcement that it had bought just over 20,000 BTC.
A vertiginous fall awaits
Source: TradingView
With the best will in the world, the short-term chart for the $BTC price does not look good. The price has crashed through the descending wedge, and has carried on through the major ascending trendline that traces a path back to the double top of the previous bull market.
There is some slight support at the current price level, but this may not hold. If the price does keep on going from here, the cliff edge will have been surpassed, and a rather vertiginous drop down to $70,000 could be next.
Last-ditch level reached
Source: TradingView
As can be seen from the daily chart above, the last line in the sand has been reached. Just one more little push from the bears and the price falls into the chasm.
That said, the Fibonacci levels, drawn from the bottom of the bull flag to the all-time high, show that the 0.382 Fibonacci level is just below the current price. This could act as a last-ditch safety net, and should a bounce occur from here it could even be termed as bullish.
Nevertheless, if the price does fall through this level, it can be seen that the first decent support is at $73,600, and just below this is the more major horizontal support at $71,300. This also lines up reasonably well with the most important of all the Fibonacci levels, the 0.618, at $72,200.
At time of going to press, the price has started to bounce from just above the 0.382 Fibonacci level. If this can continue, and the price can first claw its way back above the bottom of the wedge, and then get back above the major ascending trendline, there is breathing space, and Bitcoin may be back on track. However, if this is just a small relief bounce, and the price falls back again, stand by for $73,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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