- 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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.