Today has actually been a rough day for Bitcoin bulls. The cost visited a sharp 10% today, over $4K, over the previous hours. This comes just one day after the primary cryptocurrency reached $38K. In conclusion – – we saw a 2-day headache of practically $7000 loss in worth.
What leveraged the collapse was the horizontal triangle’s breakdown, as mentioned here in our latest BTC analysis from yesterday. As can be seen on the everyday chart listed below, once the triangle was broken in addition to horizontal assistance of $34K, the bloodbath started.
As of composing these lines, the everyday low (according to Bitstamp) lies about the assistance area at $31,200, which is the disadvantage 1.414 Fib Extension level.
Shortly after recording the existing low at $31,200, the bulls had actually come and an enormous correction above was started. We need to pay attention to the triangle’s breakdown level at $34K. In case today’s candle will close above it, then the mid-term bull pattern may still be intact. From the opposite, a retest and an unsuccessful attempt to breach mean one thing – – the bears remain in control for the upcoming short-term.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $31,200 (today’s low), $30,760, $30,000 (recently’s low), $29,630, $28,500.
Key Resistance Levels: $32,500, $34,000, $34,800, $35,000, $36,000.
Looking ahead, if the bears continue to drive Bitcoin beneath $31,200, the very first level of assistance lies at $30,760 (short term.786 Fib), as well as a strong support level from the previous week. This is followed by $30,000 – – recently’s low, $29,630 (.5 Fib), $28,500 (short-term drawback 1.414 Fib Extension), and $27,900 (downside 1.272 Fib Extension).
The next possible targets might be $26,757 (.618 Fib) and $26,000.
On the other side, the very first level of resistance lies at $32,500. This is followed by $34,000, as discussed above, $34,800 – – $35,000. More resistance lies at $36,690 and $37,940 (yesterday’s top).
The Daily RSI has actually now plunged into the bearish territory, showing that the selling momentum is increasing rapidly. Nevertheless, the Stochastic RSI oscillator both on the 4-hour and the 1-day chart are deep in the oversold location, which might set off a correction.