News
Bitcoin (BTC) loses $64,000 support
Crypto Daily – After a period of holding on to the $64,000 support, it has not only fallen, but is currently below the $63,000 support. Will the 0.618 Fibonacci level come to the rescue or is a further decline expected?
A big swing towards Fear
If there wasn’t much fear in the market the previous week, the Fear and Greed Index is certainly swinging in that direction now. After a long period in which the Fear and Greed Index was in the mid-70s of extreme greed, this indicator now shows a neutral score of 51, which represents a 20-point swing from last week.
Serious concerns about the price
With all the miners selling, long-term holders taking profits, and hedge funds employing their “carry trade” to good effect in recent weeks, the price of $BTC has struggled to make any upward moves.
If the price were to drop below $60,000 and stay below for any period of time, this would be a very serious concern. The price could even drop to around $48,000 and still remain in the bull market, but this would likely have a prolonging effect on the overall bull market and could even halt the market’s eventual top.
$BTC Bullish Wedge Pattern
However, now is certainly not the time to panic. In the short 4-hour time frame, $BTC price is in a downward sloping wedge. This is a bullish pattern and the price is more likely to break out of this pattern to the upside. That being said, if it were to break down, it would be very bearish.
0.618 Fibonacci is strong support
On the more macro weekly time frame, it can be seen that the price of $BTC has stabilized well above 0.618 Fibonacci. Given that the Stochastic RSI is now at its lowest on this time frame, one might expect a bounce to occur. If the price drops to 0.786 Fibonacci, the bounce becomes even more likely as this also aligns with the previous strong support.
If in doubt, remind yourself that this is Bitcoin
If in doubt, it is always good to remind yourself that it is Bitcoin. It’s in the middle of a bull market, and who wouldn’t want to buy this asset given the huge degree of uncertainty in fiat currencies? The likelihood is that the price will start to rise from these levels, but perhaps expect a lot of instability over the summer until it revisits all-time highs.
Disclaimer: This article is provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or other professional advice.