Bitcoin resumed its recent downtrend yesterday, falling to $ 37,700. Support of $ 37,000 is now expected to prevent a deeper drop in prices.
As shown in the chart below, the price of bitcoin has been rising since January 24; A movement that is usually accompanied by an increase in price acceleration. For now, however, the prospect of a one-month decline in the bitcoin market may increase the likelihood that prices will fall to lower levels.
Buyers need to maintain a price position above $ 40,000 to keep up with the bitcoin recovery trend; A level that is almost in the middle of market volatility in the last three months.
The recent decline in the price of bitcoin is similar to what happened last September; When some buyers near the $ 46,000 to $ 50,000 resistance zone decided to save their previous profits and left the market. At that time, however, contrary to current market conditions, a return of over $ 40,000 was followed by a long-term uptrend.
With this in mind, the limited price volatility in this area is likely to continue until the bitcoin ceiling or the collapse in the last three months is broken.
The publication Bitcoin Price Analysis: Where is the main price support? appeared first for currency.