The price of Bitcoin (BTC) has been under extreme pressure as a slew of negative indications appear. The 58,000-60,000 support zone will be essential in determining the direction of BTC in the coming months
From the development of a bearish divergence through the construction of a reversal pattern, the price of Bitcoin (BTC) has been under extreme pressure. The 58,000-60,000 support zone will be essential in determining the direction of BTC in the coming months.
The market is becoming more bearish
BTC crossed the $60,000 milestone for the second time this year and continued to set a new all-time high on November 10, 2021, after a remarkable string of price increases since mid-July 2021.
However, when the bearish divergence signal develops between price, the MACD, and the Relative Strength Index, the uptrend is weakening and is likely to reverse in the short term (RSI).
In addition, after breaking the signal line, the MACD maintained its downward trend. The RSI continues to fall below 50 points. These signals indicate that the negative risk remains.
Bitcoin has a lot of red flags.
Is it possible that history will repeat itself?
BTC immediately lost more than 40% of its value after the appearance of a bearish divergence in April 2021, which was accompanied by a break in the line SMA 50 on the same day.
In November 2021, with the price of BTC testing the road SMA 50, there will be another emergence of divergences. The market is in a dismal mood today.
Support in the 58,000-60,000 range will be critical. Apart from the pressure from divergence, BTC is also dealing with the creation of a double top reversal pattern (complex shape).
Technical analysts see the 58,000-60,000 range as a support zone that will play a crucial role in the stock market’s near-term evolution. BTC. This support works as a reversal pattern segment as well as a strong line of support for the SMA 50 Day. As a result, if the pressure to sell continues to rise, BTC will suffer. If you lose that territory, things start to look bleak.
The short-term bullish trend line from July 2021 and the line begins SMA 20Again, the closest support for BTC is 0 days.
On the contrary, if this zone holds, the situation will improve, and the rising trend that began in July 2021 will continue to aid. To the next historical milestones with BTC.