Bitcoin (BTC) stopped at $ 56,000, where we have monitored support. That declining inertia has weakened significantly, so many people can already count on us creating a bottom in the market. But I’m not entirely sure, and I would venture to say that another leg down to $ 52,500 would make sense. Among other things, we would test the first strongest level. The market would eventually use it as a launch pad.
Current situation at 4H BTC / USD
Bitcoin forms a recognizable correction structure in the graph. Not exactly the same, but similar to what the market created in September. The potential structure still has a lot of space, so we can easily stay in it for a substantial part of the following week. But the best part is that the bottom is really coming on S/R level $ 52,500, where the first is really strong supportní confluence. And that’s exactly what we need for a successful reflection.
However, even support around $ 56,000 holds nicely. There were several of those stops and it is clear that the negative momentum weakens. In other words, selling pressure is beginning to be absent. That may change, but now we have to start from what we see in the graph. On the other hand, the bulls obviously have a problem overcoming the resistance of around $ 61,000. Without it, it’s useless for them to hold the $ 56,000.
Therefore, it is technically logical to test $ 52,500. The following support can provide a lot more defense, which then results in a strong rebound, which Bitcoin may bring up to a new all-time high. Personally, I’m really skeptical that Bitcoin will go up to $ 70,000-80,000 by the end of the year. I can’t see into the future, but the $ 100,000 seems like a shootout. This would mean that Bitcoin must grow by around 90% in five weeks. That really doesn’t seem likely to me.
Indicators
Note the evolution of the RSI curve in relation to the exchange rate. Thanks to the RSI indicator, we know that the negative momentum has weakened quite a bit already at the 56,000 USD. But without reflection, it’s fart valid. The current interpretation of the MACD indicator is the same.
In conclusion
If Bitcoin can’t break through close resistance, it’s more rational to expect us to eventually test the $ 52,500. Therefore, the development may take a relatively long time within the emerging structure. However, it is true that the price trend of recent weeks ultimately looks like a simple correction. Finally we know more.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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