Bitcoin: Failure to defend $32,000 to clear the way towards $28,700/27,700 – SocGen

BTC/USD has extended its phase of pullback after giving up the 200-day moving average in late December. A break below the $32,000 level would open up 2021 lows around $28,700/27,700, economists at Société Générale report.

$43,500 must be crossed for an extended up-move

“There is a risk of continuation in the down move towards next projections at $32,000 which is also the lower band of a steep channel. Test of this level can result in a bounce however upper limit at $43,500 must be crossed for an extended up-move.”

“Failure to defend $32,000 would mean the downtrend could persist towards graphical levels of $28,700/27,700 consisting of last year's lows. This can be a crucial support zone.”