The downtrend remains intact as price fails to effectively move above $10,000. We can pick out some common features on daily chart:
Firstly, price rallies after a sharp decline and dips below MA 5 with expanding volumes later after a fake breakout above MA 5.
Secondly, price fails to form a double bottom formation in all blocks though it bounces after the first bottom.
Finally, range of dips after rallies is almost the same and prices are cut by nearly 50%.
They also have some different features, the strength of every rally after dips is weakening, besides, people daring to buy at the bottom price are becoming less and less.
If there’s another cut by 50% in the future, I believe very few people will still have the courage to take the cheapest chips over.
BTC will continue oscillating within the block for a couple of days as price rallies with shrinking volumes on daily chart today, which lines up with our previous analysis.
The only difference is that the range of oscillation has been narrowed, making it easy for us to draw a conclusion that bulls lack the momentum to move upwards, the possibility for price move above $10,000 will decrease and it’s more likely for BTC to resume the previous downtrend.
If there’s another wave of sharp decline by more than 50%, I believe price will make it to the final bottom of current downtrend. By that time, huge panic chips will be dumped, belief in BTC will vanish and price will not attempt to initiate any rally.
Overall, price holds greater chances to continue going south after oscillation and is less likely to effectively remain above $10,000 and move upwards.
Original by Kuang Ren, translated by AICoin Jami.
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https://www.aicoin.net.cn/article/16987.html
