In our past updates, I indicated the odds were high that Bitcoin would pullback since it was approaching major resistance on an advance that had occurred on weak volume. And that is exactly what has occurred.
Bitcoin is in a definitive correction and down about 30% from all-time highs set last month.
With Bitcoin in a downtrend, now is not the time to be buying. Now is the time to monitor market technicals and wait for a change in trend (breakout). Levels of support are logical areas where price could bounce or consolidate which would be the initial stages of a change in trend. Areas of support to watch are $40,000, and if that fails, $30,000.
Below is a long-term weekly chart of Bitcoin with a trendline that connects price lows. Historically, most of the major advances in Bitcoin have started at this long-term trendline.
If price falls to this level, watch out for a breakout on strong volume. Historically, when we have seen a breakout at this line on strong volume, it has lead to some of the strongest bullish moves in Bitcoin.
For a more detailed explanation, view our video update: https://assetsolutions.info/