Hi friends hope you are well and welcome to the new update on Bitcoin .
Breaking down significant support:
After breaking out the big down channel, BTC had a short rally, but now it is breaking down $33950 support. This support was also the recent swing low before breaking out the channel. Therefore, if this support breaks down then the breakout from the channel will be invalidated.
After breaking down this support the next major support will be at $28600.
Breaking down long-term structure:
On a weekly time frame, BTC is breaking down a long-term up channel . The support of this channel was also working a long-term market structure for Bitcoin .
There is 200 SMA support below the channel, but the difference is still big, because 200 simple moving average is moving at almost $22K. It is possible that the 200 SMA will move more up to provide support to candlesticks . We need to remember that Bitcoin never broke down this SMA .
Huge hidden bullish divergence:
On the monthly time frame, there is a huge hidden bullish divergence flashed as the priceline is forming higher lows, but the Stochastic oscillator is setting a lower low.
We may see volatile moves in smaller time frames, but on a monthly view Bitcoin is oversold and a hidden bullish divergence flashed, therefore, the next long-term rally can be started soon.