Bitcoin Price Analysis: What is the Key to Starting Price Recovery?
Bitcoin, which started a new downtrend below the $ 40,000 level yesterday, managed to get closer to the important area again this morning. Now, as can be seen from the short-term price fluctuations, this uptrend at $ 39,500 may face serious resistance.
To Report Bitcoin, which failed to stay above $ 42,000, faced a new bearish correction late last week; The correction that continued with the fall of Bitcoin below $ 4,200 changed the market trend and put the price in a downward direction.
The downward acceleration was further intensified by the breaking of the $ 40,000 support and the 100-hour moving average (SMA). Support at $ 39,500 was further lost and the price reached a low of $ 38,000. For now, however, the price has partially offset yesterday’s fall, with Bitcoin hovering above $ 38,800.
Buyers are currently testing the 50% Fibonacci retracement level resistance. In this analysis, Fibonacci levels are adjusted based on the downward movement of the price from $ 40,450 to the bottom of $ 38,000. If the market is bullish, the first price resistance is at $ 39,300, followed by $ 39,500 as the key bitcoin resistance. In addition, near this level a downward trend line has formed a similar resistance.
The position of this downtrend line is near the level of 61.8% Fibonacci correction. Add to that the fact that the key resistance to the price will still be the same level of $ 40,000.
A $ 40,000 candlestick crossing and closing could spark a new uptrend. In this case, the next resistance will be in the range of $ 40,450 and the simple moving average will be 100 hours, and by crossing this area, buyers can try to reach $ 4,200.
On the other hand, if buyers continue to fail to reach above the $ 39,500 resistance, the bearish correction is likely to be even broader. As the market declines, the closest price support will be at $ 38,500. The next key support is at $ 38,000, and breaking it could lead to an increase in the price acceleration and a fall to the level of $ 36,800.
The MACD is out of range and the Relative Strength Index (RSI) is above the 50 level.
As mentioned, $ 38,500 and $ 38,000 are key Bitcoin supports, and $ 39,500, $ 40,000 and $ 40,450 also act as price resistance.