Here we are again looking at Bitcoin on the weekly timeframe. We can easily estimate how the bullish potential could become active again but also how a major crash could be possible if nothing happens.
Resistance against support — Good news against bad news
Bitcoin is trading below the support level, opening the market for a major dump. This is the bad part.
The good news has several points:
1) If a crash/liquidation happens now on Bitcoin, it will be short-lived. It can happen very quickly and end with a pattern supporting months of upward movement.
2) The week is still young. It is only Wednesday. While Bitcoin trades below the support level, it may recover before the end of the week. Confirmation of this timeframe only comes after the session closes.
Bitcoin under $70,000?
Bitcoin is already trading at extreme levels for the current downtrend. Any touch of $70,000, $65,000, or $60,000 could lead to a strong reversal. Or the same support that is active now could continue throughout the week.
How long will it take?
1-2 weeks are still up in the air about what comes next. After two weeks, including this week, the picture will be 100% clear. By the time two more weeks close, we will know exactly whether Bitcoin will continue to collapse permanently, forever downward, or if the upward reversal will appear.
This is also part of the good news. The lower it goes, the stronger the following reversal.
If Bitcoin moves below $70,000, that could open the door not only for 1-2 months of upward movement on altcoins but also 2-4 months. For Bitcoin itself, the same amount of time remains open for recovery. It needs more time.
Summary
Overall, we need to wait for the weekly close. Any additional downward movement now could just be momentary as the current ABC downtrend wave has been active for four months, 120 days.
It's almost over... we are bullish next.
Namaste.
✅ Trade here on $BTC