Bitcoin price structure broken, but downtrend has yet to confirm like other cryptocurrencies
Bitcoin price and the cryptocurrency market have experienced a strong uptrend since Black Thursday – a time when financial markets fell in price, and no assets have remained stable. And while a flip into a downtrend is yet confirmed, a break in the market structure at the very least puts the uptrend on thin ice.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price market structure has been broken, but the downtrend is not yet confirmed
Bitcoin price is currently trading in a low to medium $ 10,000 range, after falling from a 2020 high of $ 12,400 and being rejected once again at $ 11,200. At press time, Bitcoin is trading around at $ 10,722, up more than 4% over the past 24 hours.
Alongside Bitcoin showing such a pattern, the fourth-ranked crypto-asset XRP is also exhibiting similar price action. Both top crypto assets could follow other, lower-ranked altcoins such as Litecoin, EOS, Chainlink, and Cardano, all of which have seemingly confirmed the downtrend.
Bitcoin so far has only posed a risk to the uptrend but has not confirmed a downtrend to a lower level. If Bitcoin is ready to return to a downtrend and is likely to return to the bear market lows, then the stock-to-flow model and any Halving-based supply theory could be halted for good.
Those who subscribe to the idea of extending the market cycle in crypto assets will be right, and investors will have plenty of time to wait for Bitcoin to reach the high price predictions that many hope for.
On higher timeframes, Bitcoin has also established lower highs, with a 2020 low of $ 12,400, $ 1,400 lower than the highs of 2019. Higher lows on Black Thursday were retest Bitcoin’s bear market bottom, has kept hopes for an uptrend.
However, a higher low is dangerous, and if the trend of the daily time frame turns down, the trend of the higher time frame can do the same. And following the definition of a downtrend and what the bull market structure will look like, crypto assets are likely to experience another sudden crash in the coming days.
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