The Bitcoin price is currently forming a Lower-High structure on the 4-hour timeframe. This price structure is very bearish and points to more sell-off for the Bitcoin price in the coming days.
The last time we saw a major Lower-High structure was after the consolidation that played out around the $64k Bitcoin ATHs. That bearish structure was then followed by a massive dump in the Bitcoin price!
The potential for this price action to repeat itself is rising very fast on the Bitcoin chart. Right now, the Bitcoin price is again just coming out of consolidation and is currently forming this Lower-High structure, can we expect a massive dump in price to follow?
In this Bitcoin analysis, we will be talking about the potential for this price dump to happen as well as the key levels we will be watching for in the coming days!
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Bitcoin Potential Sell-off! Key Levels To Watch Out For
The first level to watch out for is the $36,559 resistance. This is the Higher-Low level and we want to see the Bitcoin price respect and keep trading below it.
A break of this $36,559 level could see us breaking through the Higher-High and forming new highs in no time, invalidating this bearish prediction on Bitcoin.
However, if the resistance holds, we might see history repeat itself on the Bitcoin chart in the coming days.
This could lead to a massive sell-off in price, pushing the Bitcoin market cap and value lower. The negative fundamentals and China’s crackdown on Bitcoin already support this bearish move in price.
The first area of support to watch would be the $28,810 key level. This price level served as a major support to the Bitcoin price before and might be difficult for the bears to break through.
So we expect the Bitcoin price to sell off to this support region in the coming days before finding support. If we see a price breakthrough, we might see even more bearish momentum push the Bitcoin price lower.
We will be keeping a close eye on this support to see how Bitcoin reacts with it in the coming days.
However, this bearish prediction in Bitcoin only remains valid if the price continues to trade below that $36,559 key level we talked about earlier.
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