The price of Bitcoin has failed to recover and appears to be struggling below the $ 60,000 mark. So far, BTC has lost 7% over the past week, trading in a range of $ 55,000 to $ 56,000, failing to recover the 50-day moving average line.
The price of Bitcoin painted a lower low yesterday. Today it continues to decline and hits the critical support area between $ 53,000 and $ 58,000 – something we tracked in our previous analysis. The $ 53,000 level provides very strong support in terms of technical and chain indicators.
From a technical standpoint, there are two confluences here – the first is the 38% Fibonacci retracement level on the current structure, while the second is the trendline that goes back to March 2020 and has served as support. at many times.
Therefore, the uptrend may resume once the level is successfully backtested as support. On the other hand, the most notable immediate resistance seems to be the 50 day MA (~ $ 60.6K) as well as the psychological level of $ 60K.
Trade volume has remained constant during this correction, and bears may still have a trail in them. Therefore, it is important to be careful in the short term. Daily RSI continues to decline (but has not yet reached oversold conditions), although there are signs of bullish divergence on the 4-hour chart as RSI hits higher lows . To confirm this, BTC needs to hold above $ 53,000 and produce a significant upward push.
For the outlook on the channel, let’s take a closer look at Daniel Joe’s analysis. According to to the analyst (who writes for CryptoPotato), the confluence of the uptrend tech support is strong, while we also saw no serious signs of a major trend in the distribution.
On the other hand, miners are back in accumulation mode, while older coins do not sell at these rates.
As CryptoPotato reported today, the third largest bitcoin whale has even added around $ 375 million in BTC to its position over the past 11 days – a clear sign the entity is betting on a bullish pursuit.
Joe concludes that if the immediate support holds, the bottom seems to be getting closer.
“If the bulls can maintain the confluent uptrend support line with support, with older coins and miners continuing to HODL, I think the bottom is getting closer.” – He said.
The analyst also believes that $ 69,000 (Bitcoin’s current ATH) is not the peak of this cycle, as we have reported on numerous occasions. He considers that there is a lot of potential ahead and that the current decline is mainly due to liquidations.
Technical analysis provided by Duo Nine.
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