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Bitcoin a week after the significant drop

Today we will look again at Bitcoin and the market as a whole. It has been a week since we have witnessed a drop. So what is the current situation and has anything changed?

Before I embark on the analysis of Bitcoin, I would like to take a look at fundaments. This week there were 3 impactful events that would have been otherwise perceived as negative yet the market did not react to them at all. Every trading manual says that if the market ignores negative fundamentals, then it is time for growth. It makes sense because even negative fundamentals such as these could not “scare” people enough to go and sell their bitcoins and subsequently deepen the correction.

These 3 mentioned fundaments are:

  • FAKE news regarding Litecoin
  • 17 hours long outage of Solana
  • Failed hack on Ethereum

The fact that the market did not react to these events at all signifies a bullish market.

Bitcoin is far from key values

If there will be any crucial price movement in the nearest future, it will take place on the daily and weekly charts. It is important now that the price will stick to $ 40,000 on the daily chart. And a day candle should not close below this value either.

bitcoin on a daily chart Figure 1: Bitcoin on a daily chart

On the weekly chart, it is important that the price will not go below EMA21, which is currently at $ 43,601.

Bitcoin on a weekly chart Figure 2: Bitcoin on a weekly chart

And what about the 4H chart?

As for the 4H chart, at the moment there is nothing important for us that could fundamentally change the current state of Bitcoin. However, I currently see strong support at $ 46,834 – $ 47,185. It would be ideal to maintain this support. However, even if this does not happen, it is not absolutely crucial for further development. The nearest strong resistance is at $ 49,137, where rejection has occurred several times in a row.

As I see it, the smartest move right now would be to wait and see which key level at 4H will Bitcoin overcome first. Of course, the rule is that the longer the price holds support and goes to the side, the higher the chance that it will break the resistance. After all, our priority is still the bull market and therefore growth.

Bitcoin on a 4H chart Figure 3: Bitcoin on a 4H chart

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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