Good evening to all my friends. I hope you all doing well. I am having a good day. Friends, right now Bitcoin is above $78,000, and everyone is wondering if Bitcoin has reached its bottom. If not, how much further can it decline? In this blog, we will discuss this by analyzing multiple charts. Let's get started without wasting any more time. Currently, Bitcoin is in the CME futures gap, ranging between $77,000 to $80,000, which was formed in November. There's also an upside gap between $92,700 and $93,500. Keep in mind that Bitcoin is declining rapidly, so we may be close to the bottom. If we look at the weekly timeframe, Bitcoin has seen a 17% decline, which is the first time we've seen such a drop in a single week in recent years. On the monthly timeframe, Bitcoin has seen a 22% decline, the largest in the past two years.
If we measure Bitcoin's previous high and low, we can see the 50% retracement level around $79,300, which is a key support level. Currently, Bitcoin is trading just above this level. On the daily timeframe, Bitcoin's RSI is at 21, which indicates it's nearing its bottom, as seen in the past during previous market bottoms. Regarding the downside, Bitcoin could decline further by 7-8%. However, for a confirmed bottom, it needs to hold above the 50% retracement level. If Bitcoin drops to $73,000 or $74,000, it should maintain support at the $79,300 level to confirm the reversal.The recent market crash was caused by the tariff situation, where Trump imposed tariffs on Canada, Mexico, and China, affecting global markets. However, just recently, it was announced that the US won't impose tariffs on the UK for now. The panic among investors triggered the sell-off in the market. In conclusion, Bitcoin is very close to its bottom, but a further downside of 7-8% is possible. That's it for today. Thanks & have a good day!!
@abfarhan