Bitcoin Price Analysis: What are the most important price protections?

Bitcoin fluctuated below the resistance level of $ 33,000 last week, and now the price trend has stabilized in a narrow range. The volume of fluctuations of this digital currency, especially if the price falls further, may increase as early as May.

To Report Bitcoin Desk, Bitcoin has fallen only 3% in price over the past week, and therefore has performed better than most Altcoins. This shows that traders are reluctant to take risks. In declining markets, the price of bitcoin is usually lower than that of altcoins; Because investing in this digital currency is less risky.

The Relative Strength Index (RSI) on the Bitcoin weekly chart is at its lowest level in the sales saturation zone since March 2020. It is worth mentioning that after this date, the price of this digital currency increased sharply. However, at the moment, given the deteriorating situation of the long-term trend of bitcoin, it seems that its next ascent will be very limited.

Due to the poor state of momentum indices (RSI and MACD) in the weekly and monthly view of Bitcoin, there is a risk of further collapse of this digital currency. If Bitcoin enters a downtrend, its initial support is at $ 25,000, which is the price floor of this digital currency on May 9 (May 19). Bitcoin’s next support is the 200-week moving average (MA 200 – purple line in the picture) of this digital currency at $ 22,061. It should be noted that the 200-week moving average is a stronger support and can stabilize the price of bitcoin.

Bitcoin’s ultimate downside target appears to be around $ 17,673; A fall that is approximately equal to 78% of the price jump from March 2020 to November 2021 (March 1998 to November 1400). In addition, this price is almost 73% lower than the historical peak of Bitcoin and could cause another segment of investors in this digital currency to leave the market. It is worth noting that the price of Bitcoin in the bear market in 2018 decreased by about 83% compared to the peak of that time ($ 19,890).