Bitcoin Price Falls Below 61k Is This the End for King Coin with Another Decline

Bitcoin is currently in a phase of decline, with notable indicators on longer time frames that require close monitoring. In a recent presentation, analyst Josh from Crypto World delved into the 4-day Bitcoin chart, highlighting that despite the recent pullback, the Bollinger Bands are not widening, suggesting that a highly volatile movement (around 20-30% change) has not been confirmed. As of now, Bitcoin has dropped by four percent and is hovering around the $62k mark.

Josh has been consistent in his warnings about a bearish signal for Bitcoin and cryptocurrencies, particularly focusing on the short-term trend and momentum. Presently, Bitcoin is still within a broader bullish trend as per the Super Trend indicator on the 4-day time frame. However, this could shift if Bitcoin falls below $56,000, potentially indicating the beginning of a bear market. Historically, even in bullish phases, Bitcoin has experienced multiple pullbacks exceeding 20%.

The analyst emphasized the significance of the 3-day Bitcoin RSI, which has proven to be a reliable marker of buying opportunities during bull markets. Instances where the RSI falls below 50 have often preceded price rebounds.

Looking at the daily Bitcoin chart, it is evident that Bitcoin has breached the $63,000 support level, now seeking short-term support in the $60,000 to $61,000 range. A further drop below $60,000 could signal another downward movement, possibly reaching the $56,000 to $58,000 bracket.

It is essential to consider various time frames. Short-term trends on the daily chart typically endure from a few weeks to a few months but can exist within a broader bullish trend. For instance, we have witnessed short-term bearish trends amidst the current bull market.

Despite the short-term bearish signals, the analyst remains focused on the broader bullish trend, underscoring the importance of maintaining the $56,000 level to uphold the structure of the bull market.