Bitcoin (BTC) has seen a significant decline in price in recent weeks, and many analysts are now predicting that the cryptocurrency has the potential to fall even further. In a recent video, Nick from Cheeky Crypto discusses Bitcoin’s recent price movements on the one-hour, one-day, and one-week time frames, highlighting the potential for a diagonal pattern and the target range for the next move down.
One-Hour Time Frame
On the one-hour chart, Bitcoin has seen a breakdown below the 200 hourly EMA. This is a significant technical development, as the 200 hourly EMA is often seen as a key support level. With Bitcoin now trading below the 200 hourly EMA, there is a possibility of an expanding diagonal pattern in play. An expanding diagonal pattern is a type of chart formation that can indicate a continuation of the current trend. In this case, the current trend is bearish, so an expanding diagonal pattern would suggest that Bitcoin is likely to continue to fall in the near term.
The current target range for the next move down is approximately 26,191 to 26,308. This target range is based on the Fibonacci retracement levels of the previous swing high and swing low.
One-Day Time Frame
On the one-day time frame, Bitcoin is following a fifth-wave daily movement. A fifth-wave daily movement is the final wave in a five-wave Elliott wave pattern. Elliott waves are a type of technical analysis that can be used to predict future price movements.
The target for the fifth-wave daily movement remains at 22,000.693 to 23,000.874. This target range is based on the Fibonacci retracement levels of the previous swing high and swing low.
One-Week Time Frame
On the one-week time frame, Bitcoin found support at the weekly 200 EMA but faces resistance at the weekly 50 EMA. The price is currently stuck in a range between these EMAs.
There is a mention of a potential test of the $20,000 CME Gap, although a $35,000 test isn’t currently expected. The $20,000 CME Gap is a gap in the Bitcoin price chart that was created on December 17, 2020, when the Chicago Mercantile Exchange (CME) closed for the holiday season. The gap is between $20,000 and $20,200.
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The technical analysis suggests the potential for further downside movement in Bitcoin’s price.
This analysis provides viewers with an overview of Bitcoin’s recent price action and the possible scenarios for its future movement.
The technical analysis presented by Nick in the video suggests that Bitcoin has the potential to fall further in the near term. The target range for the next move down is approximately 26,191 to 26,308. However, it is important to note that this is just a technical analysis, and there is no guarantee that Bitcoin will actually fall to this target range.
Investors should always do their own research before making any investment decisions.