After a large drop over the weekend Bitcoin is holding above the 50% Fibonacci retracement level which is drawn from the July 20 low near $29,500(100% Fib) to the Nov 10 high at $69,000(0% Fib). This level is acting as decent support for now, but we have yet to see any eager buyers of size step in and push price back up into the blue uptrend channel, and above the 38% Fib level which is where price needs to be if we want to see the uptrend in Bitcoin continue-and by proxy the rest of the cryptosphere. For now the lower blue line of the uptrend channel and 39.2% Fib level can be considered overhead resistance levels for price in the short-term.
Should bulls be unable to push price higher from here and the 50% Fib level fails as support, we’re looking at a potential move back down near the yellow 61.8% Fib level to re-test the weekend lows. Just below there I’ve drawn a teal line near $40,000 that stems from local lows made back in September. That was the last area of strong demand prior to the dip this past weekend, and price held above it on this most recent dip. For now we can consider that area of support to still be valid.
Price will technically remain in an uptrend unless/until the $40k level is taken out as price stands right now. Should price fall below $40k bears will most likely take it all the way back down to test the summer lows near $29k as there are likely a lot of newly leveraged bulls in the market right now.
Currently neutral on price due to the magnitude of the weekend drop and lack of follow-through after the jump back up to $50k. Lower chart indicators are all showing negative trend and momentum for price which isn't helping the bullish case right now. Will turn bullish again if price can move back into the blue uptrend channel and above the 38.2% Fib level.
Should bulls be unable to push price higher from here and the 50% Fib level fails as support, we’re looking at a potential move back down near the yellow 61.8% Fib level to re-test the weekend lows. Just below there I’ve drawn a teal line near $40,000 that stems from local lows made back in September. That was the last area of strong demand prior to the dip this past weekend, and price held above it on this most recent dip. For now we can consider that area of support to still be valid.
Price will technically remain in an uptrend unless/until the $40k level is taken out as price stands right now. Should price fall below $40k bears will most likely take it all the way back down to test the summer lows near $29k as there are likely a lot of newly leveraged bulls in the market right now.
Currently neutral on price due to the magnitude of the weekend drop and lack of follow-through after the jump back up to $50k. Lower chart indicators are all showing negative trend and momentum for price which isn't helping the bullish case right now. Will turn bullish again if price can move back into the blue uptrend channel and above the 38.2% Fib level.