Bitcoin (BTC) Experiences Short-Term Downtrend, But Bullish Trend Remains Intact

Bitcoin is experiencing a short-term downward trend, with new signals on larger time frames that merit attention.

Bitcoin’s price has dropped significantly over the past few days, experiencing a short-term downward trend. However, there are new signals on larger time frames that merit attention.

In a recent video, analyst Josh of Crypto World examined the 4-day Bitcoin chart and noted that despite the latest pullback, the Bollinger Bands are not expanding. This indicates that a highly volatile move (20-30% change) hasn’t been confirmed yet.

At the time of writing, Bitcoin is down by four percent and is trading close to $62k levels.

As highlighted by Josh, he has been repeatedly warning about a very bearish signal for Bitcoin and crypto, particularly concerning the short-term trend and momentum.

However, it’s important to note that currently, Bitcoin is within a larger bullish trend according to the Super Trend indicator on the 4-day time frame. This would change if Bitcoin drops below $56,000, potentially signaling the start of a bear market.

Historically, even during bull markets, Bitcoin has seen multiple pullbacks of more than 20%.

Moreover, the analyst pointed out the importance of the 3-day Bitcoin RSI, which has been a reliable indicator of buying opportunities during the bull market.

When the RSI dips below 50, it has often preceded price recoveries.

Shifting to the daily Bitcoin chart, we can observe that Bitcoin has broken below the $63,000 support level, indicating a change in short-term price action.

Currently, Bitcoin is finding short-term support around $60,000 to $61,000. If Bitcoin falls below $60,000, it could signal another drop, possibly to the $56,000 to $58,000 range.

It’s crucial to consider different time frames when analyzing crypto price movements. Short-term trends on the daily chart typically last from a few weeks to a few months but can occur within a larger bullish trend.

For example, we’ve observed short-term bearish trends within the ongoing bull market.

Despite these short-term bearish signals, the analyst remains focused on the larger bullish trend. He explained the importance of holding the $56,000 level to maintain the bull market structure.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-experiences-shortterm-downtrend-bullish-trend-remains-intact.html

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