The recent crypto crash had resulted in numerous coins temporarily decreasing in price in a dramatic fashion. Many all-time high prices seemed irrelevant as the top coins experienced a dip so big that it had resulted in panic selling for a number of investors and traders in the community.
Nevertheless, Bitcoin remains the dominant cryptocurrency for now. Although the world’s largest cryptocurrency reached an ATH on the 14th of April earlier this month, it nonetheless decreased significantly after the fact. Still, BTC’s bullish framework remains intact despite the recent dip. The short-term recovery seems to have been V-shaped, which signifies a possible retracement prior to continuation.
Analysing Bitcoin’s short term and long-term movement
From the 12th to the 18th of April 2021, the movement of BTC had indeed been quite eventful. As aforementioned, an ATH of just over $64,850 had been reached on the 14th, but a decrease quickly followed. This decrease only worsened as the days went on, with BTC going as low as $50,931 on the 17th. As of the time of this writing, BTC is currently trading at just above $55,000.
Still, there are bearish technical indicators, as the RSI dipped below 70 and the MACD is suggesting a quite bearish reversal signal. When we combine this data with that of the bearish candlestick, we can observe a huge weakness for the long term.
As for the short term, the primary areas of resistance were at both $57,900 and then $59,500, respectively. These had been a result of the 0.5 as well as the 0.618 Fibonacci retracement levels. As abovementioned, the recovery at this point in time seemed to be V-shaped in nature, something that experts are calling quite strange. Still, as the technical indicators remain bearish, it does not seem possible that BTC can clear the areas of resistance in the short term without a possible rejection taking place. Should a decrease for BTC occur, then the support levels could be located near the $53,370 as well as the $54,100 mark.
So, there is a weakness for the long term, but this doesn’t necessarily ensure a reversal. Moreover, the bullish framework and structure are also still there. For now, all we can do is sit and watch whether Bitcoin drops beneath the recent lows or manages to make a higher-low, as this will greatly help in discovering which direction the movement will head for the future.