In another ‘bloody’ day, what needs to happen for Bitcoin Recovery?
Bitcoin dawns, once again, falling, failing to break through the zones that could throw the cryptoactive into a new uptrend.
On the daily chart, the price has broken MA200 (red) down and continues its new downtrend.
It is quite possible that the price will visit the important support zone between $29,200 and $31,200.
Losing this zone, let’s look for supports further down: $23,000 – $20,000 .
But what would be the path to a possible Bitcoin Recovery?
Graphically speaking, we can see the resistance zone between $42,300 and $47,500. This is a very important point because in addition to containing the regions where the price was rejected, it is also a stretch that lies between the EMA89 (black) and the MA200 (red), that is, we have rejection of horizontal lines and moving averages .
If the trend continues and the price continues to fall, the blue support zone could be a good booster, hitting there and rising again. But if you lose that support. . .
Speaking of fundamentals, we need to accumulate more positive news. Lately we’ve seen China (again) ban Bitcoin mining and stifle crypto investments. At the same time, every day, we see new major institutions entering the world of Bitcoin.
As BTC is the dominant crypto on the market, it could be that initiatives in DeFi and NFT will boost their protocols and take BTC with them. It’s a challenge, but we know that both innovations are in their early stages and that, in a way, Bitcoin and most important Altcoin prices are linked and project together – yes – Bitcoin can benefit from an explosion in DeFi for example … until the day these projects detach themselves from the mainstream.
Some tech giants have not yet entered the world of cryptoactives heart and soul, for now, they are putting their feet in the water. But chances are it’s just a matter of time.
As Elon Musk said in his first games of manipulating the market: “In hindsight, it was inevitable”.