Tuesday saw another nervous day for holders of Bitcoin as the price fell all the way back to good support at $64,000. However, strong buying kicked in from this level and now $BTC is looking to get back above the $65,500 support again. Could this be a local bottom?
Is this dump over?
These last couple of weeks of negative price action have taken the $BTC price down around 9%, and even as much as 11% if the Tuesday wick to the bottom at $64,000 is taken into account. Bitcoin holders will be wondering if this dump is over, or if there is more to come.
Strong buying support at $64,000
Source: TradingView
As can be seen in the daily chart above, the price has actually closed below the $65,500 support. That said, Wednesday’s candle would also have to close below for this level to be confirmed as having flipped into resistance. A wick down to the $64,000 level tells the story that this is strong buying support.
Trend line support is critical
Source: TradingView
As usual, the weekly chart puts everything into a much clearer perspective. It can be seen that if the $BTC price is able to hold support at $65,000, it will also once again be holding support on the upward trend line. A weekly close will be necessary to see whether this support holds, or whether a new candle opens below and the trend is broken.
$60,000 major fibonacci level
Drawing in the fibonacci levels it can be seen exactly where the major supports are situated, and it should be noted that $60,000 has acted as support in no less than 7 of the previous 16 weeks. If the trend is broken, then it might also be the case that $60,000 could also finally be shattered. $52,000, and then $46,000 would be the final two lines in the sand before a potential bear market is entered.
$BTC entering oversold territory
In spite of the headwinds that still beset Bitcoin, such as the miners selling after the halving, the taking of profits of the long term holders, and the hedge funds arbitraging the price with paper shorts on the CME exchange, a bounce is probably on the way, and it could even be this week or next. $BTC is starting to enter oversold territory on the medium to higher time frames, and therefore upward momentum would potentially start to buoy the price higher.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
