Bitcoin has corrected more than 10% since the rejection at the $47.3k level. It has made a low of $42.7k and has now recovered to $43.6k, which is also near the 23.6% Fib retracement level of the $47.2k swing high and $42.7k swing low. The price has now been struggling to break through this resistance; however, Bitcoin still shows stability above the $43k level. Now, we have to look at a few things to answer if there will be a recovery soon.
Bitcoin shows stability above $43k, but will there be a recovery?
Taking a look at the 1-hour chart below, you can clearly see how the Fib level has been resisting the price action to the upside. The $43.8k level has also been supported during the correction and needs to be re-aquired soon. After this level, the next resistance will be at $44.4k, which is the 38.2% Fib level. A good thing to note here is the trendline that has been broken just recently. So, we can be assured that it gives support to the price action of Bitcoin.
However, on the upside, there will be a lot of resistance near the $45k level. It took us multiple months to break through it, and now we have fallen below the resistance again. There can be two possibilities here; we might see it break through it easily, or the price gets rejected and falls back quite aggressively. We also have the 100-hourly moving average near the $45k level.
On the downside, the first support is near the $43k -$42.8k level, which has supported the price once. However, if that level doesn’t hold, we could move to the $42k-$42.2k level quite fast.
A break above the $43.8 level could directly push the price to $44.4k or even $44.8k. So, it might be a good opportunity to take a long position there. And similarly, a break below $42.8k might mean a drop to $42k, which calls for a short. The Fib levels are going to be critical to this price recovery. So, have a close eye on the levels and do your due diligence before making a trade.
Do you think we will see a recovery soon as Bitcoin shows stability above $43k? And which level is going to provide the most resistance to BTC? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.