Crypto analysis: Bitcoin drops 5%, will it return to $38,000? – BLOX | News

It has been a while since people woke up to such a red Bitcoin price. The coin fell more than 5% overnight from its resistance at around $45,000. Will the currency go up again from here, or is it also possible that the price will perform less well in the coming days? Let’s look at the graphs.

Bad start to the week

To start, let’s look at the weekly chart. Shown here are two green levels that were important in the price history. The top zone is the most important at the moment, and I have to make a small comment about that.

In the previous analyzes I indicated that the resistance could be a little higher, but that turned out not to be the case. Bitcoin already had a hard time reaching $45,000. As a result, the currency now fell to a price of 40,400 dollars.

It could still happen that Bitcoin rises and hits resistance at the previous point I mentioned (around $45,500 – $500 away from current resistance). But this scenario now seems as likely as a further decline. The coin sits exactly between the two green zones, making the next direction more difficult to predict.

The bottom zone is a logical point for support. The coin previously encountered resistance here, but after the break, buy orders were placed in this zone (instead of sell orders). It is therefore likely that this would be a good point to make a higher low. This can be seen better on the daily chart below.

Are we going to drop an additional 10%?

The only problem with that is that the currency could drop an additional 10% towards $38,000 before it moves up. This offers opportunities for people who still want to invest in Bitcoin – should the price get here and then go up – but for HODLers this scenario is less fun.

Yet such a movement does not necessarily have to occur. Bitcoin cannot always go up or down in a straight line. A correction from time to time is normal in the crypto market and it may be that this was the decline; Bitcoin has surprised us before.

It is therefore important to keep an eye on these two zones, as they have had an influence in the past. All in all, Bitcoin looks good in the long term. The price is still making higher highs and higher lows on the weekly chart, but for the coming days the price looks uncertain – especially between these two zones.