Bitcoin’s (BTC) price took a significant dive yesterday, dropping by 3.9%. While this decline was slightly below market expectations, it continues to paint a bearish picture for the cryptocurrency.

In today’s video analysis, Nick will delve into the 1-hour and daily charts to identify the underlying factors contributing to this price slump.

The bearish patterns emerging on these charts suggest that Bitcoin may be headed for further declines. One such pattern is the triangular wedge, which often indicates a continuation of the existing trend. In this case, the triangular wedge points to a potential downward movement.

It’s important to note that the current price action is more corrective than impulsive. This implies that the market is undergoing a temporary adjustment rather than a sustained downtrend.

Given the bearish outlook, we’re focusing on potential short opportunities. Our target price range for these shorts is lower, and we’re planning to enter positions around $59,000 with a stop loss near $60,000.

We expect to encounter resistance around $61,200 to $61,500, making it an ideal level for shorting.

Taking a longer-term perspective, we anticipate a relief rally followed by a potential deeper decline. To gauge the timing of this relief rally, we’re closely monitoring the daily stochastic for oversold conditions.

In conclusion, Bitcoin’s price is currently on a downward trajectory. While there may be short-term opportunities to profit from this decline, it’s essential to maintain a cautious approach and be prepared for further price drops.