Bitcoin is in a downtrend on all time frames: A price chart analysis

When they say “the trend is your friend,” it’s not just because the words rhyme: it’s because it happens to be true. If investors are in an asset with the idea of ​​showing a profit, an uptrend is the highly favored situation. It doesn’t matter what the underlying fundamental story is when price is the central factor.

How Sam Bankman-Fried of FTX and Changpeng Zhao (CZ) of Binance solve the problems involved in their Monopoly-like game is interesting and fun, but what about the price of bitcoin? Theorizing about whether a bottom might form is a favorite in chatrooms, but what about the trend in price?

It’s good for the brain to take a few minutes and just study the charts. It’s a great way to reduce the amount of noise that rises every time big bitcoin-related news hits. “Hey, it won’t keep going down, I just know it!” is a nice feeling (if that’s what you sincerely believe) as long as the steady downtrends have been seen, but briefly.

Here’s what the daily bitcoin price chart looks like:

The price has broken down through the previous support level from mid-June. It is now trading below the 50-day moving average. BitcoinBTC
continues to trade well below the bearish 200-day moving average. The hiv sales volume (depicted in red below the price fields) on 11/8 and 11/9 are confirming factors.

This is the weekly bitcoin price chart:

The distribution below the mid-June low is also evident on this chart. The previous support level failed to provide support this time. It is bearish that bitcoin is now trading below its 200-week moving average. The clear downward reversal (from early this year) of the 50-week moving average is evident.

Watch the monthly bitcoin price chart:

That’s pretty spectacular on this monthly time frame. From about 67,500 at its peak in late 2021 to today’s price of around 17,000 – that’s a 74% drop in value. Bitcoin is now trading below its 50-month moving average, and has been for 4 months now.

Here is the point and figure chart for bitcoin:

This type of chart is included for the clarity it shows. It would be difficult to argue that this is anything but a downward trend.

There are many different ways to analyze assets and then decide what action to take. Trend following seems to work for those who are willing to study it and are willing to use stop losses at appropriate levels.

Economic factors drive things, and it’s a good idea to pay attention to the latest CPI. Keeping an eye on the Fed’s interest rate actions and thinking about it is time well spent.

That said, the most revealing information is usually the price trend and especially when viewed on different time frames. The answer to the question “Which way is it going?” is valuable and available.

Not investment advice. For educational purposes only.