Bitcoin made a crucial downward breakout yesterday. The daily candle was a strong bearish one which may attract the sellers a lot to go short on Bitcoin. Yesterday’s lowest low was breached by the H4 candles. Thus, a pullback and intraday bearish reversal candles shall attract more sellers to start going short and drive the price towards the South further. Let us have a look at the daily-Bitcoin chart.
The Daily Chart
Look at the arrowed candle. This is a strong bearish candle engulfed the previous candle breaching the previous lowest low. These are the two things on the daily Bitcoin chart that surely attract the sellers to go short. As the chart shows that there is enough space for the price to travel towards the downside. This is another point which would attract the sellers. As far as the daily chart is concerned, the level of 9000.00 may be the next level of support.
Let us now find out what the H4 chart shows.
The H4 Chart
The H4 chart shows that the price made a strong downside breakout to come out from the ranging zone. As expected, the price has been bearish ever since. The sellers may keep their eyes to go short on after every consolidation. We already have seen one bearish move just after one bullish corrective candle. I assume it may keep happening until the price hits the level of 9000.00.
The Bottom Line
On the daily and H4 Bitcoin charts, all the equations favor the sellers. The selling pressure would remain high if the price heads towards the North by having a strong bearish trend on the H4 chart. On the other hand, if the price starts having correction/consolidation according to the daily chart, the selling pressure may not remain that high. So far, it looks the H4 chart has been dominating and driving the price towards the South.