Bitcoin price to rebound, but BTC has not reached a market bottom yet
- BTC price dips below $30,000 for the first correction this month.
- Chinese regulations are panicking crypto investors with mining bans.
- Stock markets push higher, leading to the potential return of risk sentiment for continued BTC buys.
Although the last few days have not held much good news for Bitcoin, there is still a potential upside for Bitcoin price.
Bitcoin price and the triangle story
Bitcoin price is technically completing a triangle action within the yellow shaded area in the image below. The base for the triangle is the 0 Fibonacci level where BTC already had tested it four times. Bitcoin does not see any big buying activity happening.
So, it looks like people are waiting on the sidelines to enter.
Next to that, a lot of people will already have entered in the past on this level, especially regarding the psychological level at $30,000. With that in mind, this is a strong liquidity zone as it is expected to see buy limits and stop losses all set within this range.
Once that has happened and if sellers remain in control, Bitcoin price might see a drop to $24,100. This would be a much better entry point for newcomers as this price level has not been tested in the past.
BTC/USDt daily chart
A trade setup with a higher risk-reward strategy would be to wait for stop losses to run and enter the market when Bitcoin price is between the range of $24,100-30,000.
Still, keep in mind that Bitcoin price needs to break the purple trendline to the upside to see a continuation back to all-time highs. If BTC can’t break above there, it might be stuck in a downward channel that drags prices further down.
Author
FXStreet Team
FXStreet
