BTC/USD Daily forecast
BTC/USD price has been in a correction phase for the last few months and the price has taken a sharp dip of late. The last consecutive three 4H candlesticks are all down and touching the 29,950 USD mark. The market has broken its support and may reach a low of around 26,000 USD price level. Let’s get into the technicals of why the BTC price continues to dump?
BTC/USD Daily Technical levels
BTC/USD market has undergone a good correction. The 4H candlesticks are showing a bearish market scenario due to the correction of BTC price for the last few weeks/months.
Fibonacci levels
Fibonacci levels are used to predict the support and resistance levels of the market. The .382 level (lowest green line on the chart below) has broken support level and the market may hit the fib level of .236 at the price of 26,621 USD. The 0.382 level will then turn into a point of resistance at a price level of 33,802 USD.
RSI Indicator
The RSI, or Relative strength index is a great instrument to check the momentum of the market. RSI of the BTC/USD pair has gone down to almost the 0 level and it is looking to bounce back. The RSI usually ranges between 20 and 80. When the RSI drops down below 20 and then crosses back over 20, this is usually a strong buy signal. Vice Versa, when the RSI crosses above 80, it usually means that the asset is overbought. AS with all TA (Technical Analyses), one can not only rely on one indicator by itself.
However, the current scenario shows that the market looks like it is going to recover soon. There is strong resistance at 33,802 USD. Anyone looking for entry may put their buy order near the support point of 26,550 USD. If this plays out, the new BTC range will be between 26,500 USD and 33,800 USD.
Bollinger bands
Bollinger bands are a volatility analytic tool used for technical analysis. The Bollinger band of BTC/USD pair has touched the 3rd line at around 30,768 USD. The market may very well go down further. The trend is your friend, as they say in the trading world. The current market downtrend could be set to continue due to all the FUD (Fear Uncertainty & Doubt) going around.
Parabolic SAR
Parabolic SAR is a great tool that is used to check the momentum or direction of the markets. The pattern is still above the candlesticks that shows a strong signal of the market going down and continuing its current trend. Currently, the BTC price is being traded at 29,711 USD.
BTC/USD price Upcoming levels to watch
The market potential is looking bearish at the moment for this pair. All the indicators RSI, Bollinger bands, and Fibonacci levels all are looking bearish at the moment and the market will test its support levels as mentioned above. However, the resistance levels are 33,800 USD and the next support level at 26,533 USD range.
What are the Causes for the recent crash of BTC price?
Following are the main causes that have resulted in a dump of the BTC price (Speculation)
- Elon musk FUD on BTC mining is bad for the environment
- Chinese regulations on crypto miners
- Reversal of pattern in the BTC price chart (Inverted Cup & Handle)
- Normal correction after a huge surge in the BTC price (Price went parabolic too quickly)
- Institutions retreating from supporting bitcoin
Final Thoughts
Whether the BTC price continues to dump or not — it is, what it is. We can only do our best to use the information at hand to make an informed decision. Whether that decision is to buy now, or cash out and put your profits to work with something like NEXO. That is one you are going to have to make for yourself. At the end of the day, BTC to the Moon or not? — today’s price shouldn’t really matter. If you are in it for the long haul, you will be handsomely rewarded in due time.
Note: This is just a personal analysis and my opinion. This is not financial advice!
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