Bitcoin (BTC): $19,000 Now Must Be Defend
BTC rate: $20,024 (previous week: $22,200)
Resistances/short-term objectives: $20,816, $21,373, $21,892, $22,834/23,289, $24,291, $25,498, $26,170, $26,743, $27,696/$28,104, $28,607, $29,256, $29.99, $25,31.2, $21,5317 , $30 5317
Short-term supports: $19,884, $19,511, $19,178/19,046, $17,860/17,567, $15,000, $13,972
- Key crypto currency Bitcoin fell to a new year low of $17,567 over the past weekend.
- BTC price thus reached the important support level in the form of the 78 Fibonacci retracement top level at $17,860.
- This liquidation liquidated over a billion dollars in long bets on Bitcoin.
- From this support mark, Bitcoin climbed back above the old all-time high of $19,884 in the following days and subsequently rose to a new weekly high of $21,744 before further profit-taking began.
- In this area, BTC price bounced off the EMA50 (orange) on the 4-hour chart to the south, but was later able to stabilize above $19,884.
The bulls work on stabilization
- Starting from the daily low of $19,935 on Wednesday morning, Bitcoin price rallied back to the first minor resistance of $20,816 in the last trading hours.
- Bitcoin follows the US Nasdaq100 and S&P500 stock indices to the north.
- The objective of the bulls now is to form a sustainable bottom above $19,146 in the next few trading days.
- From an indicator perspective, we have a bullish divergence on the RSI and MACD indicator on the 4-hour chart. In addition, the RSI on the daily chart tries to recover the threshold of 30. If this succeeds in a timely manner, more prices to the upside can also be planned from the indicator side.
- The fear and greed index also fell to a three-year low in six over the weekend. Investors have never been so bearish. In the past, these extreme values marked the timely formation of a bottom.
Bullish scenario (BTC):
- In view of the difficult market situation, the bullish camp made quite a remarkable comeback.
- Many investors recently suspected a sell-off towards $15,000 or below.
- The fact that Bitcoin has been able to defend the important support at $17,860 per 4-hour close multiple times and repeatedly close above it indicates that the bulls are willing to defend this area for the time being.
- If Bitcoin can optimally stabilize above $19,881 in 4 hours in the coming hours and days, and in particular does not drop back below the $19,146 mark, the bulls should do their best to make it break. BTC price is back above $20,816. Heading for the turquoise zone to buy.
- Above $20,816, a first relevant resistance level awaits at $21,373 with the EMA50.
The first directional decision is expected
- If this resistance breaks out dynamically, there will be a short-term directional decision between $21.744 and $21.892. A recovery is likely to give Bitcoin further upside potential towards the $22,834-$23,289 red resistance area.
- Here the bears will try to cap the price.
- If the group of buyers can generate enough buying pressure to break through this area sustainably, a follow-up move to $24,291 is planned. Here the BTC course should fail on the first try.
- If the buy side also manages to overcome this resistance, the rally will expand towards $25,498 and $26,170. The supertrend on the daily chart and the EMA200 (blue) on the 4-hour chart are in this zone at $25,876. Therefore, the price is very likely to bounce on the first test.
- If Bitcoin also breaks this resistance area in the medium term and breaks above the 61 Fibonacci retracement at $26,743, a retest of the orange zone between $27,696 and the cutting edge at $28,104 is increasingly likely.
- At best, Bitcoin might even touch $28,607 briefly before plotting another setback to the south.
- If Bitcoin were able to reclaim this strong resistance area in the future, the price is likely to rally to $29,256 and $29,975. Once again, investors are likely to get off the table in this area.
- The medium-term bullish target range for the next few trading weeks remains unchanged at $31,750 and a high of $32,383. At the moment, it is difficult to imagine a reconquest of this area. The bears will want to fight back in this zone at the latest.
Bearish scenario (BTC):
- The bears managed to clear a major downside price target last weekend. Many bearish investors took profits in the $17,860 area.
- Although BTC price may currently stabilize above $20,000 after a clear technical counter-move, the next few trading days will indicate whether this already represents a sustainable bottom formation.
- If Bitcoin slips back below $19,884 in a timely manner and also gives back $19,511 again, it should be decided in the $19,000 area if the bears really have the strength to push Bitcoin to new yearly lows in the medium term. .
- In addition to the supertrend on the 4-hour chart, the golden pocket of the current short-term trend movement is also executed here.
New test or new annual minimum
- If this area breaks out dynamically, a retest of the area around $17,860 will be planned.
- If the classic stock market continues under pressure and also forms new lows, the price of Bitcoin should also be too difficult to escape. The correlation between the classical financial markets and the crypto market is currently too high.
- If the low for the year is broken without any significant resistance, the gray zone between $15,000 and $13,972 immediately becomes the target area. This support area is taken from the monthly chart.
- This area remains the maximum bearish price objective for the next few weeks of trading.
Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations, they are merely an analyst’s assessment.
The chart images were created using TradingView created.
USD/EUR exchange rate at the time of publication: 0.95 EUR.
Do you want to buy cryptocurrencies?
eToro offers investors, from beginners to experts, a comprehensive cryptocurrency trading experience on a powerful yet easy-to-use platform.
to the provider