With the most popular cryptocurrency having lost more than 80% in a year, what is the future for cryptocurrencies? Was it a bubble? Will it be forgotten? Will we see a new leader rise and put BTC behind? We have called for a sharp decline and to avoid long positions since the start of the second wave of the pullback. There are some warning signs for bears, but no confirmed major low yet. As long as the price is below the previous base of 6k, we should remain conservative.
Bulls need a break above the green area and the downward sloping trend line resistance. Bulls should first focus on recapturing $4300-4400, otherwise, they are in danger for a new lower low. With so many people trapped in this from much higher levels, no one knows when and how a capitulation low will occur. Breaking and holding above $4400 will open the way for a retest of the resistance at $5800-6000. This is the most important resistance area. A rejection there would destructive for Bitcoin. It is too soon to talk about what happens at 6k. Let’s first recapture $4400.
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