Bitcoin has already fallen by more than 50%, according to all possible key levels that analysts could not even think of. If yesterday Bitcoin broke down the levels of $7000, $6500, $6000, $5500 and $5000, today at the opening of trading, the price of Bitcoin fell to a minimum of $3850. At the time of publication, Bitcoin is trading at $5340.
Most likely, the new bottom and new support for Bitcoin will be $4000. Analysts are talking about a possible short-term recovery, but the bulls have to overcome strong levels of $5600, $6000. These levels have been key technical support in recent sessions.
If you look at the BTC/USD chart, you can see that the decline began after the breakdown of the bullish key line with support at the level of $9000. BTC/USD is now well below 6500 and 6500 and the 100-day simple moving average.
What are the chances of recovery?
At the moment, the price of Bitcoin was able to recover from a minimum of $3850, and rise above $4000, $ 5000. However, the BTC/USD pair has not yet come close to the key resistance of $5600. If the BTC/USD pair manages to overcome this level, it will go to the $6500 area.
But there is another scenario. If the pair in the near future drops below $4500, then we will see a continued decline to the region of $4000, and then to $3800. After that, we are waiting for the level of $2400, which no one wants to even think about.
In general, any restoration will take more than one month. Now the market is more prone to panic rather than fundamental data.