Bitcoin is unable to hold firm at any support and keeps breaking down. After the rejection from $39.5k yesterday, the price has collapsed further, and now we are trading just at $38k. The price bottomed out at $37.5k and has recovered a bit. Though, it is difficult to say whether it will be able to hold here for a while. Staying above the $40k level is key, but bulls seem to have lost complete control of the market. Therefore, it is possible that as Bitcoin continues downward movement, we could revisit lower levels.
Bitcoin’s price action
A trendline has been forming in the Bitcoin 1-hour chart. This clearly shows that unless the price is able to stay strong at $38k or move up to $39k at least, we could keep moving down. Now, where can we expect the bottom to be? It is difficult to say, but Bitcoin has formed support around $35k. So, it could be possible that before the momentum changes, we revisit that level again. Keep a close look at this trendline as it has been holding quite strong from the rejection at $45k.
On the upside, the most important level right now is $39k if we don’t want to move lower. The price needs to move above that level and retest the $39.5k resistance again. After that, $40k and $40.5k will be significant levels to watch out for. I highly doubt that bulls will be able to take Bitcoin above $40k now, but the good news is there has been a hidden bullish divergence on the 4-hour chart.
Here you can take a look at the RSI levels that have bottomed out and the bullish pattern that it is forming with the candles. This keeps a little bullish, but if you are planning to take a position or are waiting to buy, I would say it’s better to wait it out. Unless Bitcoin breaks $40k, there is no point in getting in the market because you might get the chance at $35k.
What are your thoughts as Bitcoin continues downward movement? And where do you think could be the bottom of this correction? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.