Bitcoin (BTC) honored us within a week with a turnover that shuffled the cards again. But it was reasonable to wait at least for the weekly closing price so that we have a relevantly confirmed turnover. As soon as bitcoin dropped to $ 42,000 during the week, I immediately outlined the possibility of a relatively long consolidation of around $ 37,000. So something like we had until about mid-March.
Therefore, I do not fully share my opinion with those who see $ 30,000 right away. Yes, this level is quite real again. However, I am afraid that a possible descent here will take a long time, because there is a lot of that resistance on the way down.
Current situation at 1W BTC / USD
During the previous week, the exchange rate fell below S/R level 47 000 USD a oba moving averages – 50 weeks a 20 weeks. In particular, I perceive the decrease below the mentioned moving averages very negatively. When the exchange rate recently rose above them, it was the initial signal of continued growth. Seriously, bitcoin had a rise to at least the S / R level of $ 52,500. But as you can see, everything is different in the end.
The shape of the weekly candle confirmed what we were saying on Thursday’s stream. The break above the moving averages was typical bull trap. And a very ugly bull trap, because it was quite easy to fall into that trap. The week before last, the moving average was tested from above, which ended successfully at first glance. And then a full red candle is created in the graph. Holt, bad luck. You have to reckon with these possibilities as well.
In any case, the exchange rate stopped at the S / R level of 42,000 USD. It is a strong surface, so the local stop makes logical sense. The following S / R levels are $ 37,000 and of course a dynamic variant in the form 100 weeks moving average. We should not even forget the point of control volume profile.
In conclusion
So what are the prospects now? As I said, I personally tend to consolidate around $ 37,000. Bitcoin also hovered around this level in the first quarter of this year. How long can it take? From a few weeks to several months.
I would also like to remind you that we can certainly take the bull’s hand as a confirmation of an earlier signal – the crossing of the mentioned moving averages. That’s probably why it’s not completely worth ignoring these bearish crosses.
ATTENTION: No data in the video is an investment board. The analysis does not try to predict future price developments. It serves exclusively as educational content on how to approach the market. 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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