After correcting by more than 20% in 13 days, Bitcoin found support and recovered throughout last week. It entered this week a bit calm but is likely to bounce higher in the next few days. Resuming drops could trigger more correction.
During a recent price correction, Bitcoin recorded a heavy loss and slipped to the $38,500 level for the first time in two months. This price level, which serves as a retest of last November’s breakout, held as support and the price bounced back.
Following days of recovery above $40,000, the price is now floating at around $42,000, although looking indecisive at the moment. A further increase from the current trading level could add more gains to Bitcoin’s price.
Considering the past week of increase, we can say the bulls are back on track. Whether they would stay long or not is yet unknown. But with the current setup, the recovery might end anytime soon as bullish footprints slowly fade.
If the bears take advantage of the latest weakness in buying, they are likely to regain control. Should that occur, the white support line would be the next target for the bears in the near term. For now, BTC is rising back and now positioning for a big move.
Bitcoin Key Levels To Watch
On the way up, the immediate resistance level to keep an eye on lies at $43,578. It may also reclaim the $45,567 resistance when volume increases. The $48,000 level would be the next resistance to watch before climbing higher.
BTC currently sits above the $41,700 level. A drop below this level could roll the price back to $40,254, followed by last week’s $38,509 low. A breakdown from there could drag the price to $35,670, $33,393 and $31,816 respectively.
Key Resistance Levels: $43,578, $45,567, $48,000
Key Support Levels: $41,700, $40,254, $38,509
- Spot Price: $42,095
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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