The up-to-date week has been quite bearish for Bitcoin, with the price seeing major declines below multiple support levels. After losing ground above $71,000, it fell further below $67,000, signaling the beginning of a downtrend. Amid uncertainty, a cryptocurrency analyst has outlined significant levels to watch as Bitcoin continues to decline, pointing to possible price direction.
Bitcoin enters sideways consolidation
In an analysis conducted on the TradingView platform, cryptocurrency analyst Bitcoin Signals revealed several significant changes in the price of Bitcoin. The first observation is that the coin has entered a consolidation zone on the 4-hour chart. This consolidation is currently taking place in the range of $67,000 to $72,000, which is the area around which the price is currently oscillating.
As a result of this development, the cryptocurrency analyst believes that a short-term correction is forming for the cryptocurrency. This is what is behind the price drop and since then, the BTC price has fallen below significant support levels such as $69,200, and on Tuesday morning the bears were able to push the price below $67,000 after breaking below the $67,200 support zone identified by Bitcoin signals in analysis.
The cryptocurrency analyst also indicated that the price may continue to move in this range where a correction is taking place. However, as a result of the collapse, a falling wedge was formed. According to the analyst, this may mean that the Bitcoin price will again break the resistance at $69,200 and reach $72,000 again.
Based on the analysis, the cryptocurrency analyst believes that the price may continue to decline unless it manages to break the resistance at $72,000. Bitcoin Signals based this on “current market structure and price behavior following a clear breakout on the long-term chart,” suggesting a continuation of the decline.
BTC price on charts
Selling pressure is currently dominating the Bitcoin price, as evidenced by the cryptocurrency’s direction while leading indicators are rising. For example, CoinMarketCap data shows that daily BTC trading volume has increased by 89.85% in the last day. However, as the price falls, it suggests that the augment in volume is driven by sellers rather than buyers.
Over the past 24 hours, Bitcoin’s price has fallen by almost 4%, falling to the $66,700 territory. This eliminated most of the previous week’s gains as the weekly chart shows a 3% decline. It bottomed in June, equaling the May 2024 crash.
