The targets of previous analysis by experts and analysts have been ‘reached.’ However, the volatility may not yet be over. Although the price has plunged significantly from the 4250 high of the weekend, investors have not yet shown a sign of worry since no panic selling has occurred. Also, there are no high volumes introduced in the marketplace.
The Bitcoin[crypto coins=”BTC” type=”text” show=”percent”] chart currently shows the crypto hovering around the $3800 support where the price has found a formidable support multiple times recently.
The sellers tried to dump BTC at 3678. However, the 1-hour chart buyers closed the slump at $3736 and kept buying pushing the price back up over $3800.
The charts show that the movement still remains inside the channel. It seems like BTC is gradually making new lows in a controlled simulated manner. There is no much buying in the recent days since the volume has remained considerably low. Also, the selling volume might also be subsiding.
Mid-term Support and False Breakouts
It is possible that the mid-term buyers who entered the markets around the 3500/3900 in recent weeks are not selling maintaining the price above the 3500/3600 support zone. The strong support level has become an easy buy and hold psychological level similar to the way markets behaved at the 6100/6200 zone.
Everyone who bought in that zone was selling extensively when the support zone eventually broke leading to a plunge in the prices. Although the 3500 price is not yet as strong as the 6100 level, it may still trigger many stop-losses if it breaks. Whales make false breakouts to gain profits from the ‘artificial’ volatility.
If the acceleration downwards breaks the 3500/3600 support zone the next support nearby is the 3200/3300 area. Long-term analyses suggest that in this area the prices may form a V-shaped low before bouncing back up. For the short term, BTC is still hovering inside the small bear zone between 3770/3890.
This scenario increases the chance for a Bart move. However, that move is subject to long-term analysis. If the Bart move happens, it may break the 3850 level and move higher towards 3950. On the other hand, if there is no squeeze happening soon, the 3850 will become a heavy resistance barrier for the short term.
It may also become a fundamental level between the extremely bearish movements or the slow and steady movement as the current charts suggest. On the other hand, if a bull flag-ish forms around the level, the short-term low may be set. A break upwards will find the first resistance around the 4050/4100 levels.
A massive upwards movement would create a potential big double bottom on the daily charts. The 4400 level is a support turned resistance zone that is important as well. However, for a potential bull run to conquer the markets, the price should break the 4600 levels. On the long-term charts, anything below the psychological 4600 price level is still bearish.
Currently, there is no clear path because the bear flag is gradually turning into a potential Bart move. As long as no rallies of at least 150 points are experienced in the markets, the general sentiments will remain bearish.