A new downtrend is about to resume on Bitcoin as the price broke the $60K support level. Bitcoin bulls failed to reach the $69K all-time high that was created about a fortnight ago. An attempt by the bulls to rally price back to the recent high failed as the price began to drop at the beginning of last week.
The $64K mini-support was removed as the price broke through and closed around $60,000. Days after, the $60k support was breached and a new low of $55,640 was formed, according to data received from TradingView.
The price of Bitcoin rallied back up shortly but, the $60K price zone has turned into a resistance level as it rejected price.
Bitcoin is trading below the 50 EMA on the daily timeframe, and below the 200 EMA on the 4hour timeframe. The 50 EMA has crossed the 200 EMA to the downside on the 4hour timeframe and the price is currently trading below it.
A break below the $55K support will see the price of Bitcoin trade lower and this might be the birth of a new downtrend on the largest cryptocurrency.
Bitcoin has lost over 15% of its value ever since it reached a new all-time high of $69,000.
The strength of the bears on Bitcoin price will be determined by the reaction of investors on this recent loss. $50,000 is the next strong support level as seen on the daily timeframe, which is around the 200 EMA.
The last weekly candle closed as an engulfing bar, which signifies two things; the strength of the bears coming in and bulls' loss of strength. The last weekly candle is bigger than the last four candles, which means it erased all bulls' movement for the past four weeks. That shows a strong sell is coming on Bitcoin and the next support level is at $50,000. A further crash will see the price of Bitcoin go to $40K or lower.