It is important that investors have tangible information about the current state of the cryptocurrency market. In this article, we will look at the current situation of the Bitcoin market.
Bitcoin’s current market structure resembles its price action back in April. In April 2021, Bitcoin topped out above $64,000 before igniting a sharp 50% dump in price. Bitcoin price looks very similar to the $64k top which could be the reason for its sharp drop in price yesterday.
Yesterday, 7th September 2021, Bitcoin dumped from $52,000 to $43,000, losing $9,000. With Bitcoin currently trading around just below $47,000, it can still ignite the next phase of its downtrend unless it recovers a key support level.
Bitcoin Potential Bearish Scenario
Currently, the lower timeframe bullish market struture is broken. However, the macro (Weekly) timeframe structure still remains bearish. Bitcoin could ignite a dead-cat bounce from its current position and drop further to $40,000 or much worse, $37,000. Moreover, if Bitcoin moves below the current support aroun $46k and retests it as resistance, in that case, it could also drop to $37,000.
Potential Bullish Scenario
The leading cryptocurrency can have a leg up if it moves above the $50,000 resistance and breaks the macro market structure.