Bitcoin price is back below $ 57,000 after losing a key trendline that supported cryptocurrency’s now historic uptrend. The critical uptrend began immediately after the leading cryptocurrency by market capitalization fell above $ 20,000 for the first time and has never looked back since.
However, the loss of such a line could result in an initial lengthy return to previously traded prices that will require a stronger rebound before the Bitcoin bull run resumes.
Bitcoin uptrend line below $ 20,000 now in jeopardy
Resistance above $ 60,000 has again proven too strong for bulls to break and bears are now pushing the price per coin back down to retest the support. Bitcoin has held up strong so far and the uptrend has not been affected well below $ 20,000 since then.
RELATED READING | BITCOIN MINERS WHO DUMP HALF A MILLION BTC COULD NOT DENT A BULL RALLY
The full bull run started at prices much lower than more than a year ago. The leading cryptocurrency by market capitalization historically rose from under $ 4,000 on Black Thursday in March 2020 to over $ 60,000 per coin last month.
However, the recent sell-off has pierced a trendline that has long supported the strong uptrend below $ 20,000. Now it all comes down to a crucial daily candle that will close around 8 p.m. ET tonight. Today’s closing volatility could increase as the bulls try to move back above the trendline while the bears aim to ensure confirmation of further downward moves.
The uptrend line supporting Bitcoin from under $20,000 to more than $50,000 has been pierced | Source: BTCUSD on TradingView.com
Why the monthly green stripe in crypto could soon turn red
Despite the risk of losing the uptrendline, it does not necessarily mean that a downtrend is about to begin or that the larger bull market is over immediately. Bitcoin price followed a sharper uptrend line at one point and while that was also lost, a dramatic downtrend has never occurred. Indeed, the loss of the last trendline created a bull trap.
The price action also sent Bitcoin back to retest the strong resistance above $ 60,000 – the current local high – where it was again rejected. The rejection caused the Bitcoin price to fall and has penetrated the further steep uptrend line.
RELATED READING | DATA: BITCOIN BULL RUN CAN BE LESS THAN ONE QUARTER COMPLETE
Bitcoin price has been corrected more heavily in the daily timeframe. There were a handful of corrections in weekly periods, but these were weak compared to previous bull runs. However, the monthly time frames have been nothing but green for the longest streak in the past, which could indicate the first much larger correction in Bitcoin in the largest time frame.
And it all could start with a daily closing price below that clearly important trendline that has supported the entire uptrend so far in 2021. However, regardless of a short-term correction, the bull market should not end. The data suggest that only about a quarter of the currency cycles are complete.
Featured image from Deposit Photos, Charts from TradingView.com