Bitcoin Warzone has lasted 2 months and the community is looking forward to it
A strong support zone between $29 and $32k – A strong resistance zone between $47 and $42k – In the middle of it all: The Bitcoin Warzone!
This region presents itself as a price congestion zone. In January, the bulls beat the congestion, confirming the accumulation. We are now 2 months into that range and analysts indicate that the bears are most likely to win by dropping the price to $23-20k.
But why are the chances greater for the fall?
On June 20th, we had the confirmation of Death Cross on the chart, which is nothing more than the crossing of MA50 (yellow) with MA200 (wine) downwards.
90% of the time this pattern has happened, the price has actually dropped by a considerable amount. In our current case, the price of BTC goes from around $35400 to a low of $29000. It’s a strong drop, but still below what analysts usually see in this pattern and what we’ve seen in Bitcoin itself.
Today, above the $29k low, Bitcoin navigates inside the war zone; from the congestion zone that could possibly turn into distribution and then the price will fall and seek supports at $23k. This is the bear scenario.
Of course, there is a chance that the opposite will happen and Bitcoin will beat this zone up. But we believe the downside probability is even greater. This is all due to the signs:
- Very strong increase since it surpassed $20k in December/20
- Strong resistance near ATH at $59600
- China Mining Restrictions (again! Have you seen this movie?)
- death cross
Anyway, we only expose the signals without putting the emotion factor into play. There are the ‘fans’ who act as advocates of the ‘infinite high’, but in reality, the financial market will always be speculative – it will never be an exact science – we will follow and always make the signs clear.