Seller momentum over the last few weeks has lowered BTC’s price down to the macro .618 zone at approximately 27KUSD.
This is a very key level for the bulls to protect and could possibly mark the end of the bull market if lost.
That being said, we have the 1W 50MA as support around 28K USD further suggesting that there is indeed significant support and buyer demand for Bitcoin around this zone.
Alternatively, should 27K – 28K fail to do its job as support and breakdown further, then Bitcoin will likely find more bulls located around the former 2017 high at 20K USD. We can also see major uptrend support here suggesting that 19K – 20K USD may be on the cards, so have some lowball bids set there.
A closer and more detailed representation of the sell-off clearly depicts price respecting the overhead downward sloping resistance. Meaning, two things are about to happen.
First, a scenario would see BTC bump up and above this sloped resistance, retesting the slope as support before running higher to 46-47K USD
Conversely, the scenario would see BTC reject again from downward sloping resistance, this time, potentially putting in another fresh low around 26K – 27K major support. If the bulls fail to stop the bears here then 19K – 20k USD would be the next zone to keep an eye out for.
Overview: Cautiously neutral. Bitcoin isn’t out of the woods yet, however, the 27K – 28K USD major complemented with our macro .618 fib and 1W 50MA isn’t without its charm. I’d be buying cautiously here with the expectations that Bitcoin has finished correcting just yet.
Stay tuned for the next update.
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