After Reaching $31k in the past week, Bitcoin closed above that price level, broke below $30k on Monday, and retested it as resistance yesterday. The price tumbled again and set a new weekly low at $29k.
Before now, when BTC was hovering around the $28k level in the past week, the daily volume indicator had suggested a potential bearish. The $31k test at the diagonal resistance line also confirms an incoming divergence. But when the correction takes place is what seems unknown.
However, this week appears to be a correctional phase in the crypto space as Bitcoin saw a sharp nosedive to a daily low of $29k exactly on the Binance exchange.
Buyers quickly reacted to that price level, a rejection occurred and the price bounced slightly to where it currently trades at $29.3k. Although, the sellers are still hoping to take lower levels.
The sudden downturn came immediately after retesting the $30.4k zone as resistance yesterday – which happened to be a recovery of the early week sell-off. A total of 5% loss was registered on a daily scale.
Similarly, the latest correction took a lot of traders unaware and liquidated several long positions on the futures within a short period. On the spot, some traders are also counting their losses but there’s hope for recovery once it bounces back.
As long as Bitcoin continues to break lower, we should expect more bearish actions to take place in the coming days.
Bitcoin’s Key Levels To Watch
Bitcoin is currently supported by the $29k level across time frames. If the level collapses, the next support levels to consider for deeper corrections are $28,886 and $28,000. There’s also room for a drop to $26,600.
A continuous increase from the current trading level could allow more recovery toward the $30,000, $30,400, and $30,700 levels. A climb above this crucial resistance could facilitate an increase to $31,000 and $31,550.
Key Resistance Levels: $30,000, $30,700, $31,550
Key Support Levels: $28,886, $28,000, $26,600
- Spot Price: $29,300
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: meshcube/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/bitcoin-price-analysis-prediction-april-19th-btc-takes-sharp-downturn-to-29k-after-testing-a-key-resistance-level-what-happened/