Bitcoin Price Drops to Key Level as 100% Rally Since Crash Looks Shaky

All markets have been showing a strong surge in the past weeks, including Bitcoin (BTC) and cryptocurrencies. The price of Bitcoin has seen a 100% surge in a matter of three weeks since the crash.

However, is such a rally sustainable in the current economic environment? And what is needed for a further continuation upwards in the cryptocurrency markets?

Crypto market daily performance. Source: Coin360

The price of Bitcoin loses 3-week old trendline

The price of Bitcoin has been seeing a significant rally since the massive crash on March 12, as the price rallied almost 100%. However, the rally came to an end as the uptrend was lost two days ago.

BTC USD 12-hour chart. Source: TradingView

BTC USD 12-hour chart. Source: TradingView

The 12-hour chart is showing a clear breakdown of the upwards trendline, indicating weakness and a probable reversal around the corner.

The price of Bitcoin couldn’t reach the next resistance, as the price rejected at $7,400, while many traders were anticipating a rally towards the $7,600-7,800 level.

Further, the 12-hour chart is showing that the price of Bitcoin is holding on to the final level of support before a further heavy dropdown is ready to occur.

BTC USD 12-hour chart. Source: TradingView

BTC USD 12-hour chart. Source: TradingView

The last support area for bulls is in the $6,750-6,800 area. The first sign of weakness was losing the yearly and monthly level at $7,200. However, losing the $6,750-6,800 would trigger a further heavy dropdown and would trigger a higher volume drop.

The recent drop down didn’t cause a high volume profile while losing the next support zone at $6,750-6,800 will likely provide a giant sell-off towards the support zone at $5,800 and confirmation of a further downwards trend.

The reason for that is that the price of Bitcoin would be making lower highs and lower lows initiating the continuation of a downtrend.

Weekly time frame needs to close above 100-Week MA

BTC USD 1-week chart. Source: TradingView

BTC USD 1-week chart. Source: TradingView

The weekly chart is the most crucial chart at this point. Closing the weekly candle above the red…

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