Bitcoin Price Analysis: What is the key to the initial price recovery?

Bitcoin, which yesterday started a new downward trend below the level of 40,000 dollars, this morning again managed to get closer to the important zone. Now, however, as short-term price fluctuations show, the upward trend of $ 39,500 may meet with serious resistance.

Bitcoin, which failed to hold more than $ 42,000, faced a new downturn last weekend; The correction, which continued with the fall of bitcoin below $ 4,200, led to a change in market trends and a downward trend in prices.

The downward acceleration was further boosted by the $ 40,000 support breakout and the 100-hour moving average (SMA). The $ 39,500 support was further lost and the price reached a low of $ 38,000. So far, however, the price has partially offset yesterday’s decline, with bitcoin hovering over $ 38,800.

Buyers are currently testing 50% resistance at the Fibonacci correction level. In this analysis, Fibonacci levels are adjusted based on the downward price movement of $ 40,450 to the bottom of $ 38,000. If the market is bullish, the first price resistance is $ 39,300 and then $ 39,500 will act as key resistance to bitcoin.

The position of this downward trend line is close to the level of 61.8% Fibonacci correction. Add to this the fact that key price resistance is still at $ 40,000.

Bitcoin Price Analysis: What is the key to the initial price recovery?
Bitcoin price chart (click on the image to see the original size)

Crossing and closing a candle for $ 40,000 could trigger a new uptrend. In this case, the next resistance will be in the range of $ 40,450, and the usual moving average will be 100 hours, and passing this zone, buyers can try to reach $ 4,200.

On the other hand, if buyers continue to fall short of the $ 39,500 resistance, the bearish correction is likely to be even wider. As the market shrinks, the nearest price support will be $ 38,500. The next key support is $ 38,000 and its interruption could lead to a higher price acceleration and a drop to $ 36,800.

The MACD is out of the uptrend and the Relative Strength Index (RSI) is above the 50 level.

As mentioned, $ 38,500 and $ 38,000 are key to bitcoin support, and $ 39,500, $ 40,000 and $ 40,450 also act as price resistance.

The Bitcoin Price Analysis publication: What is the key to starting a price recovery? appeared first for currency.

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