Bitcoin Recovers Slightly After Testing Key Support Level
Bitcoin (BTC/USD) saw a small upward movement in the Asian session, recovering partially after dropping to the 33400 area. This level represents a test of the 78.6% retracement of the recent uptrend. During the previous downturn, stops were triggered below the 33737.64 area, which is a downside price target linked to selling pressure around 34843.04. On the upside, stops were recently triggered above several price objectives, including levels at 33819, 33755, 34826, and 35035. Major stops were also triggered above the 34190.77 area, which was a previous downside target related to historical selling pressure.
Technical Analysis Points to Upside Targets and Support Levels
The recent high around 35157 tested an upside price target at 35035 that is connected to previous upward activity. Additional upside targets include levels at 35718, 35982, 36115, and many more. On the other hand, areas of technical support and potential buying pressure can be found at levels like 32992, 31652, and 31238.
Traders are paying attention to moving averages as well. The 50-bar MA (4-hourly) is indicating bullishness above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). However, on the hourly chart, the 50-bar MA is indicating bearishness below the 100-bar MA but still above the 200-bar MA.
Key Price Levels and Technical Signals
The current price is closest to the 50-bar MA (4-hourly) at 32255.27 and the 100-bar MA (hourly) at 34182.03. Technical support is expected around levels like 31238.97, 30028.62, and 28818.26, with stops anticipated below these levels. On the other hand, technical resistance is expected around levels like 36541.57, 37239.15, and 38584.16, with stops anticipated above.
In terms of technical indicators, on the 4-hourly chart, SlowK is bullish above SlowD while MACD is bearish below MACDAverage. On the 60-minute chart, SlowK is bullish above SlowD and MACD is bullish above MACDAverage.
Hot Take: Bitcoin Recovers After Testing Support Level
Bitcoin managed to recover slightly after testing a key support level around the 33400 area. The cryptocurrency faced selling pressure but found buying interest at this level, leading to a partial rebound. Traders are closely watching the moving averages and key price levels for further signals of the market’s direction. Upside targets have been identified based on recent price activity, while areas of support provide potential buying opportunities. Technical indicators suggest mixed signals in different timeframes, indicating some uncertainty in the short term. Overall, Bitcoin’s ability to recover from support suggests that buyers are still active in the market.
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