After several days trying to hold the support at $ 11,200, the bears managed to win the battle, dragging the price of Bitcoin towards $ 9,960 in a continuous decline.
After achieving demand at a support located at $ 10,157, BTC has managed to breathe a bit, and although it is likely to make a major correction, the risk of continuing to decline is still there.
Technical analysis of the price of Bitcoin. Medium-term trend
From the weekly BTC vs USDT chart, we observe how the bulls continue to maintain control of the medium-term trend.
The 8-week EMA and 18-week SMAs are crossed to the upside following this trend.
It is still possible that the Bitcoin price drop we are witnessing is a medium-term direction correction, and that the named moving averages function as dynamic supports.
Short term trend
In the daily time frame a clear short-term downtrend is observed, recently reaffirmed with the break of the support at $ 11,200.
The recent slide went unchecked towards a low of $ 9,960, and it did not make a pullback to test the broken support as it usually does, and this is likely to happen.
The next daily support is at $ 9,537. Lower down is the demand zone between $ 9,170 and $ 8,900 that converges with the 200-day SMA.
Currently the time frame where the behavior of the BTC can be observed in detail is 4 hours.
This is where the demand zone that slowed the recent decline in Bitcoin’s price is clearly identified, causing it to immediately pull back towards resistance at $ 10,565.
A valid short-term trend reversal is likely to push the price toward $ 11,200, which should be tested before continuing to decline.
At the moment, with an upward trend in the medium term, it is not very convenient to position in favor of very prolonged falls.
For those of us who maintain a bullish view no matter how much the price corrects, let’s hope that what we are witnessing does not last too long; For now, the best that can happen is the start of a lateral period.
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