Bitcoin (BTC) provides $ 40,000 support after a record $ 10,000 rebound in four hours Monday – what price levels to look at?
After recovering from the low price of $ 30,000, BTC / USD maintained its gains and almost wiped out the previous day’s carnage.
$ 46,000: old support turns into resistance
Since the spot rate remains below expectations, analysts are looking for potential resistance levels with interest, as well as support in the event of a new market slump.
At the time of writing, bullish signals are everywhere. The financing rates are very negative. The outflow from stock exchanges in the last 24 hours has reached sky-high values; And delivered traders were effectively kicked out of the market in the liquidation of $ 8 billion.
In particular, attention is drawn to two price levels with potential lower and upper levels, respectively.
The first is $ 46,000, which is about $ 6,000 or 15% higher than the spot price. As the monitoring provider Whalemap pointed out in the chain, this previous level of support is good enough to act as resistance if Bitcoin sees an extra impulse movement in shorter time frames.
$ 46,000 is also where the important 20-week moving average (WMA) currently sits. Traditionally, weekly candles remain above the bullish 20 WMA during a bullish run, and breaking the trend can be a bad omen.
“From a technical analysis perspective, 33K looks like support,” Whalemap said next to the maps.
“A very similar setup can be seen in 46K, which is shown below. The previous support should be on the 46th resistance if we bounce off the 33rd. ”
Interesting areas for BTC / USD support and resistance. Source: Whalemap / Twitter
Although these comments were made before the $ 30,000 move, the willingness to sell is still closer to $ 50,000 and up.
Vacuum – $ 19,000
On the other hand, Whalemap warns that the relative lack of support from buyers during Wednesday’s low may open for further delivery at the $ 19,000 level.
“We have to move 29,000,” the Whalemap team told the Cointelegraph.
Otherwise, there will be a huge setback in the racks up to 19K. This means that buying at 29K -> 33K prices is a high risk and reward trade.
The increase in spot prices on stock exchanges during the day indicates that large overnight trades will be a bull trend at levels around $ 40,000.
“If you buy something because the price goes up, you will sell as soon as the price stops rising or falling … If you buy something because you think the current price is lower than fair value, or future growth will increase the value when the price goes down, ”Said Mark Yosko. , Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, for overnight Twitter followers.
“Remember that on days like today it is always a last purchase than before …”
The amount of stack coins entering the stock exchanges as proof of interest in the cryptocurrency is $ 30,000. This is a full-time high, according to CryptoQuant.