The crypto market has turned green today. With Dogecoin being the top gainer with 33% surge after the Elon Musk-Twitter news, major altcoins too are showing postive price sentiments.
BTC Price Action
The bulls may struggle to push the coin over the 9-day and 21-day moving averages, therefore BTC/USD is likely to stay above $40,000. However, the bulls must make the $39,000 support level very firm in order for the Bitcoin price to remain above this barrier.
The price of Bitcoin has yet to rise above the 9-day and 21-day moving averages, but it appears that the king currency is settling in a narrow range below them. Furthermore, Bitcoin and other big cryptos are trading in a positive tone during this session.
In the meantime, the price of Bitcoin and the daily candle are trading around $40,199, which is below the moving averages. The next resistance levels might be $44,000, $42,000, and $40,000, respectively.
Traders may see a price drop below the lower limit of the channel at $39,000 essential support if the Bitcoin price fails to cross above the 9-day and 21-day MAs. As a result, a further downward drive might push the price to support levels of $36,000, $34,000, and $32,000.
Nasty Bitcoin Price Action to Follow?
As Bitcoin weathers what he calls “nasty” market action, veteran crypto trader Tone Vays is changing his forecast.
Vays claims that Bitcoin, which is currently 42 percent below its all-time highs, is on the verge of falling even further as support levels are breached in a fresh strategy session.
He explains that, It didn’t have much of a chance to rally. It returned to the same level of support ($40,000), rallied even less, and then collapsed completely. This is a particularly heinous meltdown. The next low we have is down here, and if we get close to it, I believe it will go down and down hard.
A convincing closure below $39,500, according to Vays, would reinforce his negative perspective in the near future.
The Lucid SAR indicator, a version of the parabolic SAR that uses price and time to analyse trends and pinpoint entry and exit locations, is adding to Bitcoin’s woes. The Lucid SAR is poised to become bearish on BTC, according to Vays.
Vays thinks that If Bitcoin’s price ends today below $39,500, I’ll be quite negative moving into the weekend, next week, and even next month. It’s a really bad sign because the four-day chart is also entirely bearish, as is the weekly chart. We’re also on track to break the Lucid SAR next week. If Bitcoin falls below $39,500, all kinds of awful things are about to happen.
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Source: https://coinpedia.org/bitcoin/road-ahead-for-btc-nasty-bitcoin-price-action/