Today, we will take a closer look at Bitcoin (BTC). We will conclude this analysis with our expectation for the short-term. These are obviously not buy or sell signals.
Last week, we experienced a nice bounce following the decision in the Grayscale vs SEC lawsuit. However, this bounce unfortunately did not continue and we have been pushed back through the mid-range (fib 0.5) + the MA-200 and are back around the long-term key-support zone. What do the charts show now? Read on below!
For now, it is difficult to make a about bitcoin prediction but on the higher timeframes, we will at least keep an eye on the S/R levels drawn. We see that the 25k zone remains an essential support zone and the reaction from that area is adequate for now, the bounce from 2 days ago was around $25,400, showing that there are plenty of buyers even above $25,000. But what we want to see now is green candles with some increased volume and preferably a nice breakout and close above the mid-range (fib 0.5). Then we would really be safe.
If we zoom in even further and draw the fibonacci levels, we see that the $25,600 zone is an important short-term support and that also on the 4hr chart, the MA-200 is an important resistance that stopped last week's bounce. So the first step for an uptrend from here would be to break the $26700 wee and actually make some sideways action there as well. Meanwhile, we then want to encounter the MA-200 and if #BTCUSDT then manages to make a nice close above it, the mid-range, fib 0.5, is the new area of interest.
Forecast ahead
Should we stay above the $25k zone and fail to make a good daily close below it, I expect the market to recover in the time ahead, my bias is not bearish for now. The reaction from the $25k-25.5k zone is hopeful so far.
I do expect some sideways action first between the range of $25k and $27k for the next few days/weeks. So what I am watching for a bullish continuation are the following resistances: MA-200 (4hr) , fib 0.5 and the MA-200 (daily). For now, it is prudent to trade cautiously. We will assess the situation again in the coming days, follow our channels for updates and more.
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