Hello Traders!
The Bears re-entered the market with large sales, as a result of which the downward movement of Bitcoin intensified and the price tested the support level of $33600.
There is still an imbalance in the market towards the sellers. After testing the support level of $33600, the activity of buyers increased, who have tried to bring the price upwards twice. So far, they failed to pass the local resistance of $39100.
It should be noted that Bitcoin showed a close correlation with the NASDAQ index of U.S. technology companies, the ratio was up to 98%. In the stock market, the correction is associated with the expectation of Fed rate hikes and QE cuts.
In the next six months, we can expect one more wave of decline in the buyers' interest zone of $31000 - $33600, which should be taken into account when taking short-term and medium-term positions.
To break out of the correction, the buyers need to take the price above the $40,900 level and consolidate above the $44200 resistance level which the buyers failed to pass in January.
Considering the above, purchases can be considered in two parts: the first in the $35400 - $37800 range, the second in the $31000 - $33600 range
It is worth closing the position using stop-loss only in case the price goes under the support level of $26500.
The targets are Fibonacci retracement levels
$51500$ (0,50)
$55200$ (0,618)
Good luck and watch out for the market
P.S. This is an educational analysis that shall not be considered financial advice
The Bears re-entered the market with large sales, as a result of which the downward movement of Bitcoin intensified and the price tested the support level of $33600.
There is still an imbalance in the market towards the sellers. After testing the support level of $33600, the activity of buyers increased, who have tried to bring the price upwards twice. So far, they failed to pass the local resistance of $39100.
It should be noted that Bitcoin showed a close correlation with the NASDAQ index of U.S. technology companies, the ratio was up to 98%. In the stock market, the correction is associated with the expectation of Fed rate hikes and QE cuts.
In the next six months, we can expect one more wave of decline in the buyers' interest zone of $31000 - $33600, which should be taken into account when taking short-term and medium-term positions.
To break out of the correction, the buyers need to take the price above the $40,900 level and consolidate above the $44200 resistance level which the buyers failed to pass in January.
Considering the above, purchases can be considered in two parts: the first in the $35400 - $37800 range, the second in the $31000 - $33600 range
It is worth closing the position using stop-loss only in case the price goes under the support level of $26500.
The targets are Fibonacci retracement levels
$51500$ (0,50)
$55200$ (0,618)
Good luck and watch out for the market
P.S. This is an educational analysis that shall not be considered financial advice
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.