Crypto News

BTC is Now 40% Below ATH, Bulls Eye the MA-200 Crucial Level

Bitcoin noticed one other sharp 17% value drop as we speak, inflicting the cryptocurrency to spike as little as $36,250 as of writing these strains. In whole, the coin has now dropped by over 30% in a matter of days, and 40% under the present all-time excessive at round $65k.

The first sign for the bitcoin downturn was the break beneath the rising pattern line at the starting of the previous week when BTC fell beneath the $50,000 psychological assist. From there, the coin continued to drop to seek out assist at $42,770 (.618 Fib and January 2021 earlier all-time excessive) over the previous couple of days.

The 17% value decline as we speak brought on BTC to interrupt sharply beneath the $42K assist, which held BTC for the previous few days. As of writing these strains, the present low, which is additionally the lowest BTC value since February 4, 2021, lies at $36,250 in response to Bitstamp.

On the short-term 4-hour charts, we are able to see that BTC is buying and selling inside a steep falling value channel. The cryptocurrency reached the decrease boundary of this value channel earlier as we speak when it touched $36,250.

Another worrying sign got here as soon as bitcoin dropped under the $47-48K space and shaped an enormous bearish Head & Shoulders sample on the day by day chart as might be seen under. This sample was talked about right here for the previous two weeks. Once damaged down, the goal lies round the $32k degree (measured from the prime of the head to the neckline).

For the subsequent hours, bulls eyes a day by day shut above the important 200-days shifting common (MA) line, which at the moment lies round the $39,700 degree.

BTC/USD Daily Chart. Source: TradingView


BTC Price Support and Resistance Levels to Watch

Key Support Levels: $38K, $36,750 / $36,250, $35,900, $35,100, $33,260, $32,465.

Key Resistance Levels: $39,700 – $40,000, $42,000, $44,750, $46,000, $47,890.

Looking forward, the first assist lies at the present degree of $38K, adopted by $36,750 (.786 Fib), together with as we speak’s low at $36,250 (decrease boundary of the the value channel). This is adopted by $35,900 (draw back 1.618 Fib Extension – orange), $35,100 (brief time period draw back 1.272 Fib Extension), $33,260 (brief time period draw back 1.414 Fib Extension), and $32,465 (Feb lows).

On the different facet, the first resistance lies at $39,700 – $40K (200-day MA). This is adopted by $42,000 (Jan 21 highs), $44,750, $46,000, and $47,890 (bearish .5 Fib).

Once once more, the RSI is now the most oversold since March 2020, the starting of the monetary disaster attributable to the COVID19 pandemic. It is oversold to a degree the place it shouldn’t proceed for an excessive amount of longer, therefore a correction is anticipated. Nevertheless, if the promoting continues, the RSI has each proper to stay extraordinarily oversold for an prolonged time frame.

Bitstamp BTC/USD Daily Chart

BTC/USD Daily Chart. Source: TradingView

Bitstamp BTC/USD 4-Hour Chart

BTC/USD 4-Hour Chart. Source: TradingView

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Cryptocurrency charts by TradingView.

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