Bitcoin Weekly Chart Looking Kind of Bearish

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With so much focus on daily price action sometimes larger timeframes get forgotten. The reality is these are more important than the daily timeframe in regard to assessing trend and overall tone of the market.

With Bitcoin going back below 39K the other day it had me thinking to look at the weekly chart.

I was not excited with what I saw.

BTC Weekly Chart

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Looking at the weekly chart above there are a few clear things that happened over the last 4 weeks.

  • 1.) Price broke the descending channel
  • 2.) The 42-40K resistance was broken
  • 3.) Price failed to hold 40K as a support and broke back down.

The reversal candle we see that marked the top of the bounce and the reversal lower was a real concern when it formed 2 weeks ago.

It was followed by last weeks candle lower taking price into the high 30s again and now price looks like it wants to test the lows around 34K it put in last month.

After that, there is the 30K that everyone was talking about a month ago.

Ironically, I did say on the AMA that if BTC was gonna see 30K we will need sentiment to start swinging back bullish as it was too bearish back then.

Well, the bounce did provide the relief that was needed. Anything can happen, let's be clear. However, the probabilities are favoring more downside.

Posted Using LeoFinance Beta

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5 comments
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I agree with your analysis,

Great and simple to relate with. You have done a great job.

Cheers!

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I think you're right. I'm curious to see if the 29K support level will hold once the Federal Reserve begins to raise interest rates. Also, when borrowing becomes more expensive will this affect the risk appetite of institutional investors using leverage to trade the crypto markets?

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hope u know its the futures that's driving the market down with institutions as manipulating players they toy with crypto as they see no sufficient liquidity on spot trading

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Spot on. Fundamentally there is widespread adoption and bitcoin miners are hodling, but I fear there may be a liquidity drain when rates go up.

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