After reaching a new historical maximum, the Bitcoin price has retracted towards its pre-pump levels last week, completely deleting its rapid earnings. As a result, bears seem to claim control once again, with sellers dominating the market. While expectations for another strong recovery abound, the cryptocurrency analyst Melikatrader has outlined two possible scenarios for the pioneering cryptocurrency, with both finals in reversals reiterated towards the established local peaks.
Interruption points of the tendency lower than the bearish developments
The analysis highlights the two possible directions in which the Bitcoin price could be directed after the fall from its new historical tops. Both scenarios begin with an upward upward push and then a bearish decline. However, with each one, there is a different peak as possible before the resistance entered.
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In both cases, the first trigger is the fact that the price of Bitcoin had burst from the lower trend line of the canal. This comes after it initially broke the ascending canal of which it had been exchanged inside, with the result that were higher and minimal higher high. Therefore, the break below the trend line means that the bearish pressure is starting to dominate.
With the assembly of the bearish pressure and the sellers who take control, now there are two ways in which the price could go. The first of these is that it continues to gather and then is rejected above the level of $ 118,000. This is an supply area, in which sellers could download huge quantities of BTCs in the market and reject the price.
In the second scenario, the price continues to gather even after hitting the first supply area. This brings him to the next supply area just below $ 120,000, which is currently sitting at $ 19,700. However, the end remains the same as that of the first scenario, in which the sellers are likely to download and will send the price of Bitcoin again.
How low can the price of bitcoin go?
As the analyst highlights, the peak of both scenarios aligns with the retracing levels in which the sellers may be waiting to download. Having said that, both have a similar bottom after crashing. From here, the downward goal for both scenarios is placed at the objective of $ 115,800.
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This is because it is here that the previous demand and support had been during the previous retracing/correction. Having said that, the buyers will probably return back to this level, making it a possible bottom and the launch point for the next rally.
First floor image from Dall.e, tradingView.com graphic