Weekly Bitcoin Analysis: Can We Rule out More Breakdowns?
Bitcoin was rejected by the resistance at $19,700. The bulls don’t appear powerful enough to rally. Any substantial movement in the crypto market does not appear likely unless there is a breakthrough on either side of the current range.
Earlier this week, the SPX showed signs of a strong reversal which helped Bitcoin recover from the lows that it had formed at $18,100. However, this may not mean that the market has bottomed as the upper resistance has not yet been taken out. Therefore, a potential downside cannot be ruled out just yet.
Bitcoin then went on to test the resistance at $19,700 as seen in the chart above. The resistance proved to be too strong for the bulls to flip. It indicates that the buying volume must increase before we see a promising breakout to help take Bitcoin above $20,000.
If the upper range is broken, expect the coin to rally toward the next supply zone situated at $20,550. However, if the lower zone is broken, traders should steer clear of any long positions until the support at $18,500 is recaptured. At the time of writing, it is too early to say which side a breakout can be seen, hence, traders should wait for clear signs before taking any positions. For this reason, we will be maintaining a neutral outlook for this week!
The major points of interest to watch out for are $18,500 and $19,700.
For more expert analyses, check out our trading analysis section! (link in bio)
Earlier this week, the SPX showed signs of a strong reversal which helped Bitcoin recover from the lows that it had formed at $18,100. However, this may not mean that the market has bottomed as the upper resistance has not yet been taken out. Therefore, a potential downside cannot be ruled out just yet.
Bitcoin then went on to test the resistance at $19,700 as seen in the chart above. The resistance proved to be too strong for the bulls to flip. It indicates that the buying volume must increase before we see a promising breakout to help take Bitcoin above $20,000.
If the upper range is broken, expect the coin to rally toward the next supply zone situated at $20,550. However, if the lower zone is broken, traders should steer clear of any long positions until the support at $18,500 is recaptured. At the time of writing, it is too early to say which side a breakout can be seen, hence, traders should wait for clear signs before taking any positions. For this reason, we will be maintaining a neutral outlook for this week!
The major points of interest to watch out for are $18,500 and $19,700.
For more expert analyses, check out our trading analysis section! (link in bio)
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.