The price of Bitcoin (BTC) has risen in recent months as the price of Bitcoin has risen from $ 11,000 to nearly $ 62,000. However, such nifty combos also include relatively quiet periods of price action.
These periods are standardized and the market needs to find a new platform. In beef markets, these periods will likely continue to lengthen before a new launch takes place.
For now, it appears that the bitcoin price has been in such a period for just over a week after making steady gains above $ 61,000.
The $ 53,000 level should be kept to avoid any additional inconvenience
4 hour chart BTC / USD. Source: TradingView
The 4-hour chart for BTC / USD is showing a clear downtrend since its all-time high in mid-March. This came after breaking over $ 58,000. However, the move showed weakness as there was no indication that new buyers would support the rally.
In other words, the bullish force would be demonstrated by increasing the volume, which did not happen. Hence, a return to $ 50,000 is perfectly normal and healthy for this market.
In addition, the chart is showing a short-term downtrend that is forming lower highs and lower lows. As a result, Bitcoin has reached a support zone of $ 53,000, which can be categorized as a critical support area to hold.
If that $ 53,000 support does not hold, an additional correction to $ 49,000-50,800 is inevitable and markets will see more blood.
On the other hand, if the $ 53,000 range continues, bitcoin must cross the $ 56,200 range to gain strength again. In this regard, the $ 56,200 area can be considered a critical burglary resistance area for the time being.
However, even if $ 56,200 falls, there will still be other opponents before Bitcoin’s price reaches new permanent highs.
The daily timeframe shows a huge bullish cycle
1 day BTC / USDT chart. Source: TradingView
Bitcoin daily chart is showing what appears to be a bullish cycle leading to higher highs and lows. Traders and investors should always zoom out in order not to get confused with the general trend. Simply put, Bitcoin price dynamics remain bullish.
Therefore, a correction towards the $ 50,000 area would still be quite normal if not anticipated as the $ 50,000 area is a huge support area.
Although the Bitcoin price has been revised down to the $ 44,000 range, the bullish design is still appropriate because these sidecoins have been happening a lot since the 2017 record.
As long as Bitcoin remains above $ 44,000, preferably $ 50,000, a bearish rejection will not be valid as history has shown many examples of this.
A similar build is observed after the halving in 2020
The chart after it was cut in half in May 2020 appears to be identical to the recent change in Bitcoin’s price. In this sense, a bad breakout does not guarantee that a bear market is inevitable.
Bulls will have to be patient as bitcoin price can be set new ground. After this pressure and build up, a new impulse may appear again, which will be noticed in August 2020. During this period, the price of Bitcoin rose from $ 9,500 to $ 12,000.
The chart above shows a reversal of the bearish rejection as no new bearish bearish periods have occurred. Current price action can paint a similar picture, with lows between $ 44,000 and $ 50,000 to avoid new lower lows. If this happens, the bitcoin price will cancel the bearish deviations and the beef market will continue.