- Bitcoin price action finds near-term support, but the bias remains mixed.
- BTC is between two key zones that will dictate the future trend.
- Primary resistance and support are located nearby BTC price.
Bitcoin price remains capped after the spectacular flash crash on Tuesday but well off the lows found near the $43k value area. Two primary Fibonacci retracement levels are contributing to some sideways price action for Bitcoin.
Bitcoin price action remains weighted to the downside, but bears should be cautious
Bears will need to push Bitcoin price below the 50% Fibonacci retracement at $44,500 to stay in control. The weekly Tenkan-Sen in the Ichimoku system shares the same value area as the 50% Fibonacci retracement. The Volume Profile shows a massive volume trough between $45,000 and $40,500. This means that if bears push Bitcoin below $45,000, there will likely be a rapid fall towards the top of the next high volume node at $40,500. In other words, it is easier for Bitcoin to move lower than higher.
Expect strong support between $40,000 and $41,000 as those levels contain the top of the Cloud (Senkou Span A) and the 38.2% Fibonacci retracement.
BTC/USD Daily Chart
Bulls will need to push the Chikou Span back above the candlesticks, which means a close above (at least) $49,500. This would also put Bitcoin price above the daily Tenkan-Sen, Kijun-Sen and the 61.8% Fibonacci retracement level. If bulls generate a close above the aforementioned $49,500 price level on Wednesday, there will be a high probability of a bear trap and short squeeze opportunity for bulls.
Bears should be cautious of the 4-hour chart, as Bitcoin is heavily oversold on the Relative Strength Index, Composite Index and OPTEX Bands.
On the flip side, Bitcoin bulls should be cautious of further downside pressure, as the Relative Strength Index, Composite Index, and OPTEX Bands have yet to all trigger an oversold condition.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.