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October 2, 2022
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Guide & Analysis

Bitcoin drops 28% to $ 30,000: can the bloodbath stop here? – BTC price analysis

Bitcoin plummeted more than $ 10,000 compared to last Friday’s ATH

Bitcoin’s price plummeted today, after falling almost 25% in the last 24 hours, and almost 30% compared to ATH which was set at $ 42,000 last Friday.

In the last 14 hours Bitcoin has dropped a total of $ 7,400 after the break in the marked downward triangle (4-hour chart). Bitcoin has dropped dramatically to $ 30,700 at the current low, according to Bitsamp.

Usually, this type of retreat is necessary after the upward parabolic movement. There has been no significant correction (of more than 25%) since Bitcoin broke the biggest historical record of 2017 a month ago.

The question now is whether the bulls found a support level strong enough in the medium term upward trend line at $ 30,700. This trend line extended to the December lows and allowed the BTC to recover and trade above the $ 32,500 support provided by a 0.282 Fibonacci retracement level.

While it looks like Bitcoin should recover from here, a break below this uptrend line could mean another spill for BTC as it would likely cause the price to fall below $ 30,000 and help bears with another panic sale towards to supports of $ 26,750 (0.618 Fib Retracement) and $ 24,000.

Bitcoin short-term price support and resistance levels to watch for

Main levels of support: $ 32,500, $ 30,700, $ 30,000, $ 29,630, $ 27,870.

Main resistance levels: $ 34,000, $ 36,000, $ 37,150, $ 38,000, $ 39,000.

Moving on, the first level of support is at $ 32,500, which was the low before the recent drop to $ 30,000. The next level to be considered is on the uptrend line, around the current $ 30,700 fund. This is closely followed by the $ 30,000 psychological support.

Below $ 30,000 the additional supports are found at $ 29,630 (Fib retraction 0.5), $ 27,870 (Fib retraction 1,272), and $ 26,760 (retraction of Fib 0.618) and $ 26,000. In addition, $ 24,000 and the 2017 ATH at $ 20K.

On the other hand, the first major resistance level is at $ 34,000. This is followed by $ 36,000, $ 37,150, $ 38,000 and $ 39,000.

Today’s settlement caused the daily RSI to fall below the midline, finally releasing the RSI from the overbought area in which it was being traded. A recovery in the RSI can be expected at 40, as it jumped from the same area in November and December.

BTC / USD Daily Chart – Bitstamp

BTC / USD daily chart. Source: TradingView

4-hour BTC / USD chart – Bitstamp


4-hour BTC / USD chart. Source: TradingView

Source: CryptoPotato

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