BTC/USD Long-term Trend: Bearish (1D chart)
Resistance levels: $3800, $4200, $5000,
Support levels: $3200, $2800, $2500,
Considering the daily graph, it is quite revealing that the trend remains in a decline. There’s no significant prove to confirm the market position as bullish. In fact, price action is actually waving below 50 days moving average line. The bears are very much in play; they target $3200.
A look at the descending channel shows a Long-term retracement which appears unending in a slow movement. The price bars were volatile at the beginning, but recently appear choppy owing to low trading volume. As price moves side-ways on the RSI, traders and investors watch and await the future direction.
With no doubt, Bitcoin’s fall will continue until the market is rescued from the bears’ hand. At this point, only the bulls can resurrect the crash market. Breaking $3800 and $4200 would confirm that.
BTC/USD Medium -term Trend: Bearish (4H Chart)
For over a month now, Bitcoin‘s correction is still on the motion battling with the strong $3500 support level. The price level which has been tested two times. A third test is likely going to be either an incline or decline move.
Following the triangle formation, the market is reaching its angle as candlesticks become smaller. This indicates low volatility. A break is compounding on the descending triangle. The chances of breaking downward are higher than upward because the bearish pressure is quite dominant for a long period; $3400 and $3200 are next supports. But if price surge north, $3800 would be speedily tested as $4200 is next. By then, the RSI would point up. For now, it still faces down.
At the moment, another red candle is gradually building below the 50 days moving average line. This could be the expected surge in a disguise.
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