Bitcoin (BTC) had a pretty interesting development yesterday, as the exchange rate fell below $ 40,000 for a short time. However, I was suspicious for two reasons. On the one hand, something similar happened in September last year, and on the other hand, selling pressure somehow did not increase. On the contrary, the price drop slowed below USD 40,000. Folkly, someone caught it there.
Current situation at 1D BTC / USD
So Bitcoin did attack aggressively S/R level $ 42,000 and even managed to break it for a short time. But as I wrote above, I saw in the parable with the development from September 21, when it was low at 39,600 USD and the price was then managed to drive back up nicely. Among other things, the decline practically did not upgrade at all, but rather slowed down under support.
The fact is that the described development can be reversed evaluate positively. Price action gives the impression that someone strong went under the $ 40,000 for liquidity that awaited there in the form of stop losses. As a result, day candles have a form Doji, which is in this case bullish.
I have long been skeptical that the $ 42,000 market will break through too easily. There were some risks, but still – it’s a very strong level. In addition, there is “concrete” in the form cluster volume profile. So around $ 42,000, it’s pretty strong confluence.
Indicators
The daily RSI fell below 30 points, but it was more or less tight and the momentum is currently seemingly overturning. Even according to the MACD, the negative momentum weakened.
In conclusion
As I have said several times, Bitcoin needs to consolidate on current support. It takes at least a few days and then we’ll see. In any case, yesterday’s price action increased the chances that the exchange rate would eventually rebound. But you still need to be prepared for the possibility of a slump and not be surprised.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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