A connection between trends of different scales is usually the reason for natural movement. So, how and why exactly did the downward trend of Bitcoin’s price, that started on March 4th, happen?
During CoinTelegraph’s monthly analysis , we discovered that there was a good chance of a decline to previous levels, due to Bitcoin’s price being in a position which is usual for a change of cycles. <a href=’/tags/bitcoin’ class=’tag’ target=’_blank’>Bitcoin</a> price chart Earlier , we defined key weekly/medium-term levels of $420 and $445, which were responsible for one of the several potential scenarios for further development of the long-term trend. The BitcoinCT r: 8 price was fluctuating between them for a while, bouncing off the top of $445 and, without fortifying there, falling back to the bottom of $420. Bitcoin price chart Thus, there was no opportunity for a continuation of the medium-term upward trend. That was the first indicator of the future decline, which would support the recoil of the larger cycle.
Another significant confirmation was the fortification at the level of $420. It was that event which might have been responsible for the decline to the minimal point of $400.
A break through the level of $417, and fortification there, were the last two things which confirmed the downward trend. The $417 mark was the decision point, not only for the short-term, but also for the medium-term trend. We wrote about the time of choice on Friday, March 4th . Bitcoin price chart Ultimately, there was a possibility of a recoil within the larger trend. The change of cycles was the reason for that possibility. There was a break through the key resistance point of $420, which was protecting the medium-term upward trend. The price fortified there and formed a short-term downward trend, which resulted in a natural decline.
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