Bitcoin Breaks Ascending Price Channel & Hits .618 Fib
- Bitcoin is down a small 1.5% today as the cryptocurrency continues to head lower from the
36K resistance seen earlier in the week. - It broke the previous short-term ascending price channel and is attempting to defend the support at $32,650 (.618 Fib Retracement).
- If support at $32,650 breaks, all hopes rest in the range between 30K and 31.5K.
The price of Bitcoin dropped another 1.5% today as it continues to dip from the intra-week high at $36,500. Bitcoin had rebounded from $30,500 over the weekend and produced a double bottom formation on the daily chart. Since then, it went on to form a short-term ascending price channel which allowed the coin to reach as high as $35,500 (bearish .618 Fib Retracement) this week.
Unfortunately, it has been unable to continue beyond this resistance and has since rolled over to break toward the downside of the price channel. The bulls are now trying to defend the support at around $32,650, which is provided by a .618 Fib Retracement level.
Bitcoin Price Analysis
What has been going on?
The 4-hour chart currently provides a better outlook of what is going on within the market. It shows that Bitcoin was trading inside an ascending price channel since the double bottom over the weekend. It traded higher inside this price channel until Tuesday, when it ran into resistance at a bearish .618 Fibonacci Retracement level at $35,615.
BTC was unable to overcome this resistance, and it eventually rolled over from there and started to head lower. Finally, on Wednesday, it broke toward the downside of this price channel and hit the support at $31,780 (.382 Fib Retracement).
Bitcoin could not hold above this support level and has continued lower today. Therefore, we can see that the support at $32,650 is the next critical level to defend, provided by a .618 Fib Retracement.
Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.
If BTC heads lower, the first level of resistance is the aforementioned $32,650 level. THis is followed by $32,00, $31,500, and $31,115 (long-term .886 Fib Retracement).
Additional support is then expected at $31,000, $30,600, and $30,000.
Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at $34,000. This is followed by $35,000 (bearish .5 Fib Retracemetn), $36,000, and $36,500 (bearish .618 Fib Retracement).
Beyond the intra-week high, resistance lies at $37,000, $37,425 (1.414 Fib Extension), $38,000, and $38,620 (bearish .786 Fib Retracement).
Looking further ahead, resistance is located at $39,000, $40,000, and $40,560 (long-term bearish .382 FIb Retracement).
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