Bitcoin (BTC) takes the plunge - what’s next?

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Bitcoin has fallen through the important support at $59,000. Currently at $57,000, the king of the cryptocurrencies could plunge even further down. How far will it go?

Bitcoin breaches last line in sand

The last line in the sand has been breached. $BTC took the dreaded plunge and is currently clinging to support at $57,000. A further fall here is likely to take the price all the way down to $51,000, with perhaps a quick stop at around $54,000.

Source: Coingecko/TradingView

The 4-chart above shows how $BTC fell through the bottom of its bull flag. 4-hour and 8-hour candle bodies have closed below the bottom trend line, and it only remains for a daily candle to close below in order to confirm the breakdown.

Eleventh hour hope for $BTC

However, even at the eleventh hour, there is still hope for a bounce from the alpha cryptocurrency. All short term time frames are showing that the $BTC price is oversold, and even the daily is about to enter this territory. More importantly, the weekly time frame for the stochastic RSI is bottoming right now. As the price makes that bottom over the next several days, and starts to cross back up again, the resulting momentum should force a decent bounce out of $BTC.

Source: Coingecko/TradingView

Looking at that weekly time frame, it should be noted that the current support at $57,000 is actually very strong. Depending on how long it takes the stochastic RSI to turn back up, this could save the price at this level. That said, there is still time for the $BTC price to fall to $51,000, even if this is very quickly, and a long wick down might result. This potential strong buying signal, combined with a turn back up of the weekly stochastic RSI could push the price back up again.

The bitcoin hedge against the system

Looking further out into the rest of the Spring and into Summer, on the one side are the bears with potential economic downward pressures spurred on by increasing inflation and worsening job figures, and on the other side, the bulls will be pushing the price up in the knowledge that bitcoin cannot be controlled by governments nor central banks, and is therefore a hedge against the failing monetary system. The rest of this bitcoin bull market will be extremely interesting to witness.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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