Despite several attempts, sellers have been unable to generate traction below recent low levels suggesting that the overall cryptocurrency markets may be set for a comeback this week. The sell-off from the past few days has lost momentum as Bitcoin continues to hold ground against the U.S. dollar from the beginning of today’s trading session. Although the outlook is skewed on BTC to the downside as the bears had a short-lived shallow dip under $30k. Sellers were repeatedly unable to break the yearly lows as BTC/USD finds footing at $29,301. The flagship currency is currently trading in the $30,000-32,000 range as of this writing. After China declared war on Miners, the US cryptocurrency community has taken a significant defensive stance against the bearish trend. The markets have regained some optimism, but the situation remains unpredictable. On the one hand, most cryptocurrencies appear to be on the rebound. Risk aversion, on the other hand, could limit these growth rates and lead to new selling.
Resistance Levels: $37,500, $35,000, $33,500
Support Levels: $30,000, $28,800, $25,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
BTC price is posting a strong recovery with price action attempting to retest the previously formed highs. However, the reversal looks to be a bit fragile at the moment. As a result, if the price fails to break out above the moving average (MA 50) once again and above the previous highs near $37,500, then we could expect to see some downside correction taking place.
For the moment, the BTC price remains somewhat mixed in its bias. Price action on the daily chart shows a bullish reversal following the rebound from lows which comes after the strong declines from Tuesday to $29,301. However, from here on, BTC/USD will need to close above the previous highs of around $35,000 to continue to post further gains.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
The Bitcoin market appears to be turning into a consolidative phase for now. Eyes are now on the short-term moving average (MA 200) and the $33,500 resistance. Break there will argue that corrective fall from $41,322 has been completed at $28,800. A stronger rise would then be seen back to retest the moving average (MA 200) and the $45,000 high.
Technically, as noted earlier, a BTC/USD break of $29,000 level will open up the case for retesting the $28,800 low. The development could drag down bulls and boost the bears if the pair fails to sustain the rebound. As BTC/USD recovers after drawing support from $29,301, more upside could be mildly in favor. Bitcoin bulls are having a slight upper hand over the USD.
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