The price of bitcoin (BTC) has risen significantly in recent months. The price of bitcoin has risen from $11,000 to nearly $62,000. However, these impressive recovery periods also include relatively quiet periods of price movement.

These periods are consolidated and are necessary for the market to find a new bottom. In bull markets, a continuation of the upward movement is likely after these periods before a new upward push can occur.

The price of bitcoin seems to be in such a phase now, having hit a record high of over $61,000 just over a week ago.

The $53,000 level forshould be maintained to avoid a significant decrease for.

4 hour chart BTC/USD. Source: TradingView

Bitcoin’s lower lows worry traders — But is the BTC bull market really in danger?

The 4-hour chart of BTC/USD shows a clear downward trend since the recent all-time high in mid-March. That was after a break of $58,000. However, this move showed weakness as there was no sign of new buyers to continue the rise.

In other words, increasing strength would be evidenced by increasing volume, but that hasn’t happened. So a correction to $50,000 is perfectly normal and healthy for this market.

The chart also shows a short-term downward trend with lower highs and lows. Against this backdrop, the price of bitcoin has fallen by $53,000. The total amount of aid amounts to US$ 1.5 billion, which can be regarded as a critical area of support.

If this $53,000 support does not hold, another correction to $49,000-50,800 is inevitable and the markets will see more blood.

On the other hand, if the $53,000 area holds, the bitcoin price would have to break through the $56,200 area to regain momentum. In this regard, the critical resistance zone that can now be broken through can be considered the $56,200 zone.

Nonetheless, even if $56,200 is broken, there will be more resistance before the bitcoin price can target new all-time highs.

Daily timeframe shows a massive bullish cycle

1 day chart BTC/USDT. Source: TradingView

Bitcoin’s lower lows worry traders — But is the BTC bull market really in danger?

The daily chart of bitcoin shows a clear upward cycle with higher highs and higher lows. Traders and investors should always zoom out to avoid confusion about the overall trend. Simply put, bitcoin’s price action is still bullish.

A correction around $50,000 would therefore be quite normal – even expected – as the $50,000 zone is a huge support zone.

Even if bitcoin continues to correct towards $44,000, the bullish construction remains in place, as these sideways forks have been fairly common since the 2017 all-time high breakout.

As long as bitcoin stays above $44,000 and preferably $50,000, the bearish divergence is invalid, as history shows.

A similar accumulation was observed after transection of 2020.

1 day chart BTC/USDT. Source: TradingView

Bitcoin’s lower lows worry traders — But is the BTC bull market really in danger?

The construction of the chart after the price halves in May 2020 looks identical to the recent bitcoin price action. In that sense, a failed breakout is no guarantee that a bear market is inevitable.

Bulls should be patient, as the new bottom for the bitcoin price could be set. After this compression and build-up, a new wave of momentum could occur, as it did in August 2020. In that time, the price of bitcoin has risen from $9,500 to $12,000.

The above chart shows the invalidity of the bearish divergence, as no new lower bottom has formed. Current price action could paint a similar picture, with a bottom between $44,000 and $50,000 needed to avoid new lows. When this happens, the bitcoin price will reverse the bearish divergences and the bull market will continue.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.

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