On June 11, the Bitcoin price created a massive bearish engulfing candlestick, causing the price to break down from the long-term ascending support line it had been following since March 13.It is possible that this was the beginning of a longer-term corrective movement that could knock the price all the way back to $7,000.
Bitcoin BreakdownOn June 11, the Bitcoin price created a bearish engulfing candlestick, that caused it to decrease from a high of $9,964 to a low of $9,113. In addition, this caused a breakdown from the long-term ascending support line, which had been in place since May 13. This breakdown occurred with very significant volume. After the breakdown, the price seemingly found support above its 50-day moving average (MA), which initiated a slight bounce. From the current level, the customary movement would be an increase that validates the support line the price just broke down from, followed by a decrease towards the range low at $8,550. A decrease below the latter would likely take the price all the way to the 0.5 Fib level of this entire upward move at $7,100. This is a longer-term movement that would likely take several weeks to develop.
Short-Term MovementIn the short-term, yesterday’s decrease was halted at $9,113, where buying pressure stepped in, as evidenced by the very long upper-wick and increased volume. The price is likely to begin retracing towards the closest minor resistance area, found at $9,550, which is also the 0.5 Fibonacci level of the entire downward move, making this a very likely reversal level. Afterward, the price would be expected to continue its downward movement, which could go as low as the closest support area, found at $8,700. To conclude, the Bitcoin price broke down from a long-term ascending support line, suggesting that it might have begun a correction phase that takes BTC back to $7,000. For our previous analysis, click here.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.