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August 9, 2022
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Guide & Analysis

Bitcoin registers 17-day low and is now facing critical support – BTC Analysis

Analysis shows that, in line with the sharp drop in prices, the current moment of Bitcoin is bearish, but there is still optimism on the way

Bitcoin has dropped dramatically 10% in the last 24 hours, going to $ 50,000. The cryptocurrency has been falling all week, after falling below an upward trend line around February’s previous ATH by around $ 58,300 on Monday.

Initially, it found support at $ 54,000, but it was broken yesterday, causing Bitcoin to fall further to the 0.618 Fib retracement at $ 51,540. Today, the price decline continued, as the 10% drop caused the BTC to record a current low of $ 50,360 according to Bitstamp.

On March 20, Bitcoin was rejected trying to break through the $ 60k resistance level. Since then, BTC has lost almost $ 10k in value. In fact, $ 50,300 is the lowest price that the BTC has been trading since March 8.

The bearish momentum follows global markets. On Wednesday, the main Wall Street indices fell by 1-2%, and today the bloodbath continues with the Nasdaq in the red.

On a daily schedule, Bitcoin broke a critical upward trend line around $ 54,000 and is now struggling to stay on top of the 50-day moving average line, which is currently around the $ 51 mark. thousand. In addition, a daily close above the latter is the first condition to avoid a deeper dive towards the average zone of 40k.

Bitcoin price support and resistance levels to watch for

Main levels of support: $ 51,540, $ 51,000, $ 50,000, $ 49,195, $ 47,700.

Main resistance levels: $ 53,500, $ 54,000, $ 56,000, $ 58,350, $ 60,000.

Looking ahead, the first level of support below $ 51,540 is at $ 51,000 (50-day MA). This is followed by $ 50,000, $ 49,195 (Fib retraction 0.382), $ 47,700 (Fib extension 1.618), $ 46,000 and $ 44,750.

On the other hand, the first resistance level is found at $ 53,500 (upward trend line that started to form in January). This is followed by $ 54,000, $ 56,000, $ 58,350 and $ 60,000 (this week’s high).

It is important to note that the RSI is now the most survived since mid-January, as it is below the level of 30. This indicates that market sentiment is quite bearish. In this bullish run, the last two times the daily RSI has dropped below 50 have been in the last days of the past two months. On both occasions, it took Bitcoin no more than two weeks to set a new historical record.

In addition, the stochastic RSI is extremely oversold, and a bullish cross may give some hope for a bullish correction.

Bitstamp BTC / USD Chart – Daily

BTC / USD daily chart. Source: TradingView

Bitstamp BTC / USD Chart – 4 hours


BTC / USD 4 hour chart. Source: TradingView

Source: CryptoPotato

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