Bitcoin (BTC) remains in correction mode, and the BTC price fell below $ 17,600 on December 11, the lowest level since November.
Bitcoin is in a downward trend on lower time frames
Each trip ends beautifully and is accompanied by a correction period. This correction seems to have started with a price drop of more than 10% after reaching a new full time ten days ago.
Meanwhile, some news, such as the proposed regulation of crypto in the United States, are also raising fears in the jubilant market. However, other markets were also affected this week as shares also declined.
The 4-hour chart indicates a clear downward trend. This downward trend is confirmed by lower highs and lows as shown in the chart.
First, the bitcoin price failed to break through the all-time high, after which $ 18,500-18,700 served as a strong support zone during the week.
Each bounce of this area (as shown by the arrows) represents a weaker retraction as lower heights are formed. After three tests, the support failed, and Bitcoin fell to the next support level between $ 17,600 and $ 17,800.
This support area started a small recovery to $ 18,500-18,700. To be bullish, this area had to turn for support, which did not happen. This rejection confirmed the reversal of the downtrend support / resistance, after which the downtrend resumed.
In general, a downward trend will register lower highs and lows, always lows, until a clear low is found. The market does not seem to detect this at any time, as the higher time frames also want to turn south.
Confirmation of bearish deviations on the daily time frame
The daily chart indicates a potential bearish deviation that is ready to run. This downward deviation will be confirmed when the bitcoin price falls to $ 18,600-18,800.
In this sense, the previous resistance becomes resistance again, confirming the weakness in the markets in general and the probability of further downward movement.