The price of bitcoin is heading its own direction as usually, regardless of technological and user experience development progress of the cryptocurrency. It is a downward move making lower lows during these days and weeks. It is time for you to prepare your bitcoin wallets for some new satoshis if you don’t prefer buying on/at the top.
So where is the bitcoin price heading and where we can expect a rebound? Considering bitcoin has been moving for quite a time in charted territory, the technical zones can be of some help.
Daily BTC/USD chart suggests the price obviously sits in fairly clearly delineated descending channel. The lower border of the channel lies at about 6000 USD currently. This place roughly corresponds with a strong support zone which showed its strength at the end of 2017 and start of 2018. Bitcoin price made several strong upward rebounds from this level back then. Only the 6th attack of sellers were successful and bitcoin booked its local record low at that time.
Weekly BTC/USD chart also shows a descending channel been formed. The parallel line of two contacts of the upper bound determine possible rebound zone of the lower bound. If ever the price gets there…Well, it is quite probably after breaking down the strong support at 6000 USD.
It will be interesting to watch the price behavior if BTC/USD gets there, and even more so considering last time it shot up and went through this zone like it didn’t exist. Clearly the rule on price support turned into resistance was not valid here.
Can we see new two-year low if the support at 6000 fails? Sure, of course. Weaker hands will be selling bitcoin in panic and the pressure can keep growing with new record lows. Just to lay out the complete picture: the 1000 USD zone has not been tested yet since its break up at the start of 2017.
Is it realistic to expect bitcoin price collapsing so deep down? Well, not much probable, but you know… There is nothing impossible for bitcoin.
A look at Mayer Multiple chart : Bitcoin sits comfortably in safe zone suitable for accumulation.
Not an investment advice, you should make your own decisions: Do not overthink it here and buy some bitcoin around 6000 USD. Then you can wait there for next price action and save some gunpowder for next possible drop or buy some more after an obvious rebound up.