First up and then down in Bitcoin, will the correction be short-lived? here's a detailed review
Bitcoin (BTC) attracted attention with its volatile movements yesterday. BTC, which rose up to $ 40,550, saw the closing of the day at $ 37,200, giving back half of the gains with the pricing of Amazon's refutation news.
Bitcoin (BTC), accompanied by positive news, started the day quickly and saw an increase of 14.6%, and after a short stay in the $40,000 band, it could not stay above the resistance levels and returned to the channel.
Bitcoin daily chart
source In this context, $38,000 – $38,100 was an important resistance area. BTC/USDT has yet to reach enough buyer volume to turn this region into support. Crypto , which fell to $ 36,380 during Asian trading hours today, is on the slope of slowing the correction by recovering somewhat in the morning.
If it fails to enter the $38,000 band in intraday trading, the correction may continue and we could see BTC move towards the middle band of the falling channel. In this case, $34,800 (8-days EMA) could be followed as the initial support point. Just below, there is support at $33,800. This level is the middle band of the channel and the price where the 21-day EMA value is located.
On the daily chart, the stochastic RSI continues its horizontal position at the top of the extreme zone. As we mentioned before, falling below 80 is critical and can be interpreted as a bearish signal. On the other hand, we see that the CMF indicator remains in the positive zone.
3-Hour Bitcoin chart
If we evaluate the last week's uptrend; The movement started from the low of $29,800 on July 21 and continued to $40,550 seen last night. This upward trend has been corrected since last night. The current price is hovering above the Fib 0.382 critical retracement point of $36,434 relative to the Fibonacci retracement levels and has been defended by buyers since the day open. Just above, the 3-hour, 8-candle EMA at $37,250 could act as an intermediate resistance, if it breaks, there is a more important resistance at $38,000 (Fib 0.236).
Accordingly, if Bitcoin can close a day above $ 36,450 today, it can continue to rise and move towards $ 44,000. Closing the day below $36,450 or forming a long bearish candle, the cryptocurrency is likely to move to the 35,000 – 34,500 band. If this area continues to break, $33,800 may work as a more solid support, which, as we mentioned above, aligns with the 21 EMA on the daily chart around 33,800 and the middle band of the channel.
In summary, $36,450 on average can be followed as the critical level that will determine the direction of Bitcoin for today.
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