Bitcoin fell during the week and has developed a solid downtrend, which has found its peak so far in the fall. This downturn started after the breakthrough support of a Triangle Pattern tracked since the all-time high.
Summary
The Bitcoin price has dropped this week.
A Triangle Pattern that has been in progress since the all-time high of December 17 has been broken at lower prices.
Most important support is 8,818.85 euros, the most important short-term resistance at 11,073.27 euros.
Like the entire cryptocurrency market, Bitcoin has fallen sharply. In addition to the continued weakening Bitcoin network, especially new negative headlines from China of an even more restrictive approach to crypto currencies may be a reason for the massive slump in prices. Similarly, the recent media-based topic "Bitcoin Bubble" will have moved investors to convert their Bitcoin funds into Fiat currencies - whether the appropriate thoughts on bubble formation are justified or not, is irrelevant.
From the point of view of the technical chart analysis, it can be seen that the uptrend tested last week was finally broken and had to give way to a downtrend. This downward trend led to a repeated test of the Triangle Pattern, which has been underway since the end of December and whose support was broken during the night from 15 to 16 January. The price is currently around 10,000 euros, but has already reached minima of 9,300 euros.
The MACD (second panel from the top) is negative, as well as the MACD line (blue) is below the signal (orange).
The RSI is at 22 and is therefore not only bearish, but oversold.
Overall, therefore, the situation is bearish according to price, trend and indicators. However, the low RSI gives hope for a turnaround.
The most important support is at the level of mid-December characterizing price fluctuations and is 8,818.85 euros, a level that has already been tested in the flash crash of 22 December. Should this support fall, the next important support would be 6,953.84 EUR. If that were to happen, the rally that began with listing on the Chicago-based exchanges CME and CBoE would not only have come to an end, but completely reversed.
The most important Resistance is described by the minimums of December 31st, January 12th and January 14th and is at € 11,073.27. A rise above this value would raise hopes for a broken downward trend, a hope that would be sustainably confirmed and strengthened by rising to over 9.700 Doller.