Bitcoin on the cliff edge

Extreme nervousness is permeating the crypto market. The monthly close is later today and if $BTC closes under $61,000, there could be a lot more pain to come as bitcoin falls off of the cliff edge.

$BTC perilous monthly close

The crypto market is almost totally swathed in red. Bitcoin is heading down once again, and this time there may be no stopping it. Currently down at around $61,700, $BTC only needs to lose another few hundred dollars for the day in order to make that perilous monthly close.

2-month chart shows extreme danger

Source: TradingView

The main problem with the monthly close is on the 2-month chart. Here it can be seen that the candle for this 2-month period has a huge wick to the upside, which is bearish. The small candle body makes it very like a doji, and the correct name for it would be an “inverted cross doji”. It is signifying that there is a lot of selling pressure that is forcing the price down.

If the $BTC price closes under around $61,000 at the end of play on Tuesday, bitcoin could be in for a further two or three months of downward price action, so the next few hours will be very important.

Stochastic RSI could save the day

Source: Coingecko/TradingView

Moving into the weekly time frame, it can be seen that the $BTC price has fallen through the trend line, although the general up trend is still intact. One very positive thing for $BTC is the stochastic RSI. As can be noted in the above chart, this is currently bottoming, and once there is a cross up, there is likely to be a lot of upside momentum behind the $BTC price once again.

For the time being, it is a case of waiting to see what happens over the rest of Tuesday. With the BTC price now dipping below $61,000 at time of going to press, it will be very interesting to see where the price ends up at the end of the day. If the drop does come to pass, it’s good to remember that this is bitcoin - chances to buy at lower prices are God-sent in a bull market.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.