Bitcoin Technical Analysis February 11: $69,000 Breach Confirmed – Bearish Leg Lower Ahead?

A daily close below the $69,000 major horizontal support level means that the bears are fully in the driving seat. Will the Bitcoin price now fall to $65,000 and then $60,000? Where could the bottom of this bear market be?

$BTC price rolling over again

Source: TradingView

The 4-hour time frame chart for $BTC shows that the price is once more rolling over. Critically, a daily close below what was major support could be the signal for the next leg down. Drawing the Fibonacci levels in the chart for the latest move, it can be noted that the 0.618 level, at around $65,000, does correspond to a horizontal support level. Below this, the next, and last, Fibonacci level of 0.786 aligns with the 4-hour candle bottoms for the last downward move. 

Either of these levels could provide a bounce, and $60,000 could do the same through a double bottom. Although the odds are that even if the price gets back to the $69,000 level, now resistance, it could just be to confirm the breakdown before a much lower drop in price.

From the bullish perspective, the Stochastic RSI indicator lines are at the bottom, and so a bounce could even take place from here.

$60,000 bottom still a possibility?

Source: TradingView

Extending the trendlines of the falling wedge one can see that what is now the top trendline is acting as resistance, while the bottom trendline may have become support. 

The $65,000 support level is quite important, given that it also provided resistance for the first of the double tops in the 2021 bull market. Be that as it may, given that the top of that bull market ($69,000) has offered so little support so far, what chance would this level of support have?

Nevertheless, the size of the bounce from $60,000 could still signal that a bottom was found. It just remains to be seen whether the bulls can somehow force the $BTC price above $69,000 again.

More reasons for a bottom

Source: TradingView

The weekly chart does offer a glimmer of hope for the bulls. While on the daily chart the new daily candle has definitively closed below the major $69,000 support level, the weekly candle still has a few days left in which to close above. Higher time frames can always cancel out what happens in shorter time frames.

If one also looks at the Stochastic RSI and the Relative Strength Index, it can be seen that both of these are at bottoms. The Stochastic RSI could turn back around and start signalling upside price momentum, while the Relative Strength Index has entered oversold territory, and is not far from equalling the bottom level recorded in the 2022 bear market.

With Bitcoin recording potential bottoms against gold, silver, and many of the major AI stocks, perhaps it would not be a surprise to see a rally from around the current levels. There might still be a few more percentage points loss to come, but Bitcoin’s time back in the sun may not be that far off.

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.