Another new beat in perspective! – After its failed attempt to escape over $ 46,000, Bitcoin (BTC) fails to get through the water. Indeed, it is currently endangering key support. And at the same time, the revival of a chartist figure learned by many investors is on the table again. So we went from an ideal situation to the most critical one within a week.
If the cryptocurrency king’s prices continue their current momentum, the trend since his last ATH in November 2021 would once again become highly uncertain. Especially since the recent technical signals do not seem encouraging for the following week. Hence the fear of approaching a critical turning point.
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Bitcoin – Kumo in high tension and the return to the foreground of the shoulder-head-shoulder
Many of us thought the $ 46,000 resistance was a done deal. Unfortunately, a weekly candle above this level doesn’t mean it’s a foregone conclusion. Because to be safe, it should have been followed by two bullish, and if possible consecutive, candles.
It is also clear that it deteriorates rapidly. Moreover, Bitcoin prices are doubly threatening the lower bound of the Kumo (cloud), Senkou Span B (SSB) and support at $ 41,000 in weekly units. The latter is far-reaching, as it represents the shoulder-head-shoulder (ETE) neck line. In this downward spiral, the Chikou Span, the last curve of the Ichimoku, slips below this level, while it is already drowned in the cloud.
As I mentioned last week, ETE’s comeback is sadly on the verge of being on track. But on one big condition: that BTC’s slide continues well below the $ 41,000 support. An unfavorable technical signal that would lead to another one, with outgoing prices below the Kumo.
Bitcoin – Fragility to be expected if the $ 41,000 support is broken
The pill is difficult to swallow in daily units. Indeed, the consolidation we are seeing may become even more pronounced. And not only did the last three daily candles (excluding this Saturday) close below the $ 41,000 support, but that remains to be confirmed over Easter weekend.
Although there is still no danger as we speak, we see unfavorable technical signals coming from the Ichimoku curves. First, Bitcoin prices pushed the Tenkan and Kijun lower respectively following the so-called $ 46,000 resistance breakout. Second, the move under the Kumo is approaching dangerously, with the price touching the SSB. Finally, synchronously, the Chikou Span is very close to overflowing the Kumo.
That is why the confirmation of the $ 41,000 breakout would risk making the cryptocurrency king trend fragile, which in turn has already been uncertain since his last ATH in November 2021. ‘Take the point home to threaten $ 37,000-38,000 support, then maybe $ 34,000-35,000 support.
As Bitcoin is at the peak of its correlation with equity indices, the likelihood of crossing greater resistance and new ATHs would decrease. I would say even more that we could consider the ATLs from 2020 in view of the great uncertainties on the financial markets.
While the king of cryptocurrencies struggles to prove his hedging status against inflation and geopolitical risk, the latest developments in BTC prices would lead us to revise the supports mentioned on the daily chart and, why not, that of the summer that lasted about. $ 30,000.
If there is strong support at the $ 41,000 support, we would move away from a gloomy market scenario. But despite all of this, Bitcoin will once again have to contend with the $ 46,000 resistance which I will describe as annoying and foolproof.
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