A historic massacre that will leave deep scars! – This is a week that is likely to impress the crypto market. But if we limit ourselves only to the graphical level, then it is clear that Bitcoin (BTC) has fallen. Indeed, the exit from the range in which it has been developing since the end of January was, unfortunately, from below.
Under these conditions, the already uncertain price trend of the crypto king is now moving into bearish mode since his last ATH in November 2021. Although this worst-case scenario needs to be confirmed next week, many investors are keeping their feathers. And since that wasn’t enough to see it through, the adverse signals for the latest BTC technical analysis are going full speed ahead. With the idea that the flight of bears can lead to a completely useful purge.
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Bitcoin – seven in a row?
Without getting soaked Bitcoin appears to be on track to consolidate its streak of seven consecutive weeks of declines. Moreover, it will be a historical first since its existence. But the main thing is different, because the $35,000 support, which was previously the low point of the year, has been broken. Thus, the price trend of BTC turns bearish with the confirmation of two ever deeper highs and lows. Hence the significant weight of the low since the last ATH in November 2021.
As for the evolution of the various Ichimoku curves in line with recent movements in weekly units, there is nothing to suggest a return to optimism. First of all, Bitcoin and Chikou Span prices are moving away from the bottom of the Kumo (cloud), Senkou Span B (SSB) at the same time. On the other hand, Kijun, which has stagnated in the $52,000 resistance area for a long time, is sliding into the cloud. And that’s from the moment the crypto king’s fall accelerated to $30,000.
In the same time, The fact that the king of crypto sees his supports break further reinforces the decisive role of the bearish shoulder-head-shoulder (ETE) chart pattern in the current bearish move. This is a lot of negative technical signals that are unlikely to reassure cryptocurrency investors.
Bitcoin – $30,000 to the rescue?
If Bitcoin managed to return to the $30,000 support level, the fact remains that a new attack from sellers is expected in the next few days. But even so bearish pressure seems to be suffocating in daily units. This will leave time for a technical recovery despite prices and the chikou span below the cloud.
This Friday, May 13, we observe the morning star. We remind you that this is an upward reversal pattern formed by three candles. The first is a bearish candle followed by a small bullish or bearish candle that closes below the first candle. The third is a bullish candle.
In this case, the second candle looks like a doji, while the third lacks credibility due to its reluctance to break above the $30,000 support that was last year’s low. On the other hand, the price gap between BTC and Tenkan seems to be large. An eventual fill with new bullish candles will confirm the morning star with a short-term target in the $35,000 area.future former support turned into serious resistance.
So Bitcoin’s bearish move since its last ATH in November 2021 is up to you whether you like it or not at the chart level. It’s not just his return to dominance that suggests we may end the ALT season until further notice. And since the crypto king is still correlated with the evolution of stock indices (and therefore risk appetite), the $30,000 support will come under selling pressure. Below this critical threshold, not much would be left to find a valid starting point.
To make matters worse, the misadventures of the stablecoin UST, which have sowed a frenzied wind of panic across the entire crypto market, have scarred retail and institutional investors alike. Therefore, and while this is a personal matter, I fear that there could be a temporary crisis of confidence in this young asset class. In this case, the hypothesis that the price of Bitcoin points to the symbolic $20,000 bar will no longer be fiction. But in the end, wouldn’t it be worth the real reload start the real top quality bull race again?
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