The recent days were rough for Bitcoin after dropping from the record high at $58,000 on Sunday by almost 25% just two days later. As of now, Bitcoin bottomed at $44,750 on Tuesday, and heavily bounced back to the $50K region. But, was that the ultimate short-term bottom after the 2-day bloodbath earlier this week?
Looking from a longer-term perspective, BTC managed to close the daily candles inside the ascending price channel that it has been following the price for the entire period of February. The upper boundary of this channel had provided strong resistance for the currency on Sunday, just as Bitcoin turned bearish and plunged towards $45K.
Following a decent recovery, yesterday Bitcoin dipped once again, reaching as low as $47,200 (.382 Fib) but, once again, it recovered to close the day inside the aforementioned price channel.
Looking at the short-term perspective, as can be seen on the following hourly chart, Bitcoin is now trading inside a symmetrical triangle pattern as it battles with the upper boundary as of writing these lines. A breakout toward the upside could speed up the recovery, creating the necessary support around the $50K line. On the other side, a breakdown from the triangle’s lower boundary and Tuesday’s low might not be the weekly lowest.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $50,000, $48,000, $47,200, $44,750, $43,745.
Key Resistance Levels: $51,000, $52,500, $55,000, $56,112, $57,686.
Moving forward, in case BTC breaks above the triangle, the first level of resistance lies at $51,000. This is followed by $52,500, $55,000, and $56,112 (1.414 Fib Extension – purple). Additional resistance lies at $57,686 (1.272 Fib Extension – blue & ATH-day closing price), $59,000, and $60,000.
On the other side, the first support lies at $50,000. This is followed by the lower angle of the triangle, $48,000, and $47,200 (.382 Fib Retracement). Additional support is found at $44,750 (Tuesday’s low), $43,745 (.5 Fib), and $42,050.
The daily RSI has bounced higher over the past three days and is now at the midline, indicating indecision within the market. If it can rise higher from 50, the bullish momentum will increase and should help BTC trade higher within the price channel.
Bitstamp BTC/USD Daily Chart
Bitstamp BTC/USD 1-Hour Chart
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