Will Bitcoin Continue to Drop? Technical Analysis 06/25/2021

I’m gonna start with the Logarithmic Chart of Bitcoin on a Daily Time frame. Looking at this currently chart, we can clearly see that the price of bitcoin broke the lower trend line of our parallel channel since the COVID-19 Crash around March 2020.

So, the question is, is this just a pullback to the support trend line that has a possibility to turn into resistance trend line? Looking at this current chart, we can say that ‘Yes’, there is a possibility of that can happen.

As of the moment, the battle between bulls and bears are still intact even though bitcoin price is still in a range between 28ish K to 40–41k. If BTC price can break the 41–41k Level of resistance, this parallel channel from March will be invalidated that will to another fake out and there is possibility that the bull run will continue.

Now, let’s zoom in a little bit on a 4hour time frame, we can see that we are back in range and still consolidating and we can clearly see that this can still be a possible pullback from the break down from the parallel channel.

So even though btc is back in range, we can’t ignore the possible pullback of it. Unless BTC break the key level of resistance around 42k, i can go long, until then, I’m looking for short.

Zooming in to a 1h Timeframe:

We can see that it is forming a rising wedge pattern that favors the bears on the break out through the lower trend line.

Key Takeaways:
* BTC is possibly having a pullback to turn the long term support into resistance around 35–37k
* I’m still looking for a short position unless we see a major turn over that can lead to a fake out from the down side and fully recover to bull market