What seemed like a simple excess of volatility is still affecting the entire crypto market. The price of Bitcoin continues to fall, approaching 30K again, the minimum that it marked during the crash last Wednesday.
At the time of this reaction, BTC is trading at $ 33,000, accumulating a loss of 12% in the last 24 hours and 30.97% in the last 7 days.
The feeling of fear still continues to play its part in the market. We went from a feeling of maximum greed to extreme fear in a matter of days, this while the price fell from an all-time high of almost $ 65,000 to $ 30,000.
Clearly the bears are in control of the short-term trend, but only that. There is still an incredible dominant bullish force as we will see later.
In the daily time frame we see the price making lower and lower maximums and lows, which seemed to have found support at 30K after the recent crash, the same price level where previously a great upward momentum began, and that speaks to us of a accumulation of orders that can defend the major trend.
Today BTC is entering that great demand zone again in order to put it to the test again. Respecting it, which is most likely, could be starting a new momentum with great force, or in the worst case, a lateralization with a bullish direction while the bulls regain strength. Losing her would be bad news.
Key Support and Resistance Levels as Bitcoin Continues to Fall
In the weekly chart we are seeing a rather unfavorable scenario, with the current candle about to close with a large bearish volume, breaking the support at $ 45,240, and generating a clear negative bias.
However, if we look to the left, we can see that this may not be more than a necessary correction. Bitcoin had been on the rise for several months with only minor corrections along the way. Finally the bulls were sold out.
As Bitcoin continues to fall, the immediate support zone around $ 32,000 is visited. This area is very likely to cause minimal correction.
The question is itself will be the beginning of the resumption of the long-term trend, or a respite before continuing to fall. I continue in favor of the 1st scenario.
In any case, what we have to do is monitor how the price behaves. If we see a recovery topping $ 45,000, it is quite certain that the bearish configuration that is observed is just a correction of a larger trend.
This would give way to continued buying until it runs into resistance at $ 59,000, but that should not be likely for long, if the trend was indeed resumed.
If we see Bitcoin recovering with little force, we could see at least a lateralization above $ 32,000. Finally, losing that support would be bad news, since there will be no demand zone until approximately $ 19,500.
You can think of two options: The bull run is over or it is just a correction. What do you choose?
Fear is engulfing the market. Many predict that the bubble has burst. For my part, I am still quite confident that it is only a setback before continuing to rise. It is up to you to decide which side you take.
While Bitcoin has been falling sharply, the number of stablecoins on exchanges has risen to all-time highs, which is taken as a positive sign. The reason: most of these currencies logically enter the market to buy cryptocurrencies.
Another big positive sign is the recent peak in the number of accumulation addresses, telling us about holders taking advantage of low prices to increase their positions.
If we look at the monthly BTC vs USD chart, we notice how we are developing a big bull cycle, such as the one that preceded the 20K high of 2017.
Despite the large body of the current monthly bearish candle, we see that it still does not compare to the previous strength, and that it may simply be signaling a pullback before moving up further.
I repeat, I see a scenario where the odds are tilted towards a higher rise in the coming months. What are we close to the top? Yes, but I still think the best part is missing.
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