After increasing by 50% in two months, Bitcoin paused its rally and slipped under $37,000. Despite that, the trend remains bullish on the higher timeframe. Amid the latest drops, its dominance stands at 51.1%.
The latest drop in Bitcoin’s price was triggered by a sudden rejection after almost hitting $38,000 last week. That came after witnessing a huge rally in the past months.
As a result, Bitcoin lost steam and dropped below the $37,000 level yesterday. The bears showed interest and are now reacting to price due to weakness in buying. BTC volatility may continue to drop if the buyers fail to show strong commitment.
Aside from the rejection, which suggests a potential correction, Bitcoin has tested its channel’s upper boundary during the recent rally. A huge drop should be expected if the price respects this channel’s boundaries.
Additionally, the fear and greed index, which stood at 74 last week is now 70 – indicating more sell actions are taking place. More so, trading volume has dropped significantly with a 4% loss in the last five days.
From a technical standpoint, Bitcoin looks due for a correction. In fact, the price is becoming weak on the lower timeframes. If the crypto clubs higher in the next few days, it may spike to $40,000 before dropping.
Bitcoin’s Key Levels To Watch
As Bitcoin sets for correction, the closest support to watch on the way down is marked at $35,982. Far below that support lies the $34,578 level, followed by $33,393, $32,602 and $31,816 – where the price broke out in October.
Reclaiming yesterday’s $37,429 high and last week’s $37,982 high could pave the way for more push toward $38,500. Higher resistance levels to consider for an increase are $39,000 and $40,000 in case of breakups.
Key Resistance Levels: $37,429, $37,982, $38,500
Key Support Levels: $35,982, $34,578, $33,393
- Spot Price: $36,455
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.