• Bitcoin price is still recovering from the December 5th flash crash.
  • Buyers have been able to keep prices above a capitulation zone – thus far.
  • Significant bullish expansion moves ahead, but an equally bearish drive lower could occur if bulls fail.

Bitcoin price action has been flirting with a final support level that could see prices drop from $47,000 to $37,000 without much effort. The daily candlestick chart warns of continued bearish momentum, but the Point and Figure chart shows a path to rally Bitcoin higher.

Bitcoin price positioned to surprise short-sellers

Bitcoin price has been testing its final support zone near the $47,000 value area for the past twelve trading days. Bulls have become increasingly nervous, but a significant amount of buying and selling has occurred in the $47,000 to $49,000 price ranges. So much so that it is very close to creating a new 2021 Volume Point Of Control (prior was at $57,000.

BTC/USD Daily Ichimoku Chart

The red highlighted zone on the candlestick chart represents a capitulation zone where the volume profile things out, and prices could travel through very quickly. If bulls fail to hold $47,000, a return to the $30,000s is almost inevitable. However, the Point and Figure chart may tell a different story.

The $1,000/3-box reversal Point and Figure chart show that a bullish reversal pattern is developing. The hypothetical long idea is a buy stop at $50,000, a stop loss at $46,000, and a profit target at $69,000. The profit target is derived from the Vertical Profit Target Method in Point and Figure Analysis. A two to three-box trailing stop would help protect any implied profits.

BTC/USD $1,000/3-box Reversal Point and Figure Chart

The trade is invalidated if a new column of Os prints before the entry has occurred.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP