The chart continues to spell out the dangers for Bitcoin
Bitcoin is still largely consolidating between the range of $30,000 and $40,000 in the bigger picture of things but with every passing day, things are not shaping up too well for the cryptocurrency – at least from a technical perspective.
Since the sharp drop in May, there had been two attempts to try and get back above $40,000 and that failed. Following that, the latest series of bounces have been rather disappointing as each new high is shallower than the rest.
That is leading to the lower highs, lower lows pattern in the past few weeks and that is not a convincing sign that there is a bullish turnaround approaching.
The daily close today and over the weekend will be significant as one that puts Bitcoin closer towards $30,000 could easily threaten a firm break below the figure level and from there, price could really run quickly to the downside.
Then again, it is Bitcoin and another test of the key support level could trigger technical buying though that just puts things back into the current range.
In any case, if you just go by the charts, Bitcoin is in a rather precarious position and recent price action is favouring sellers ahead of a key test of $30,000.
This is really going to shape up to be another milestone for Bitcoin as the gains for the year are threatened, after having started 2021 at ~$29,000.