Bitcoin seems to be going from bad to worse, with another 7% price drop today.
BTC decreased by a total of $3,300 today as it dropped below $47,750 and also beneath the important support at $44k.
The cryptocurrency continued to spike downward, reaching as low as $43,000 before a slight rebound, as of now.
Looking at the short-term 4-hour charts, Bitcoin dropped off the support at the 200 EMA today as it broke beneath $44,750.
However, there might be some hope for the bulls. BTC might be forming a bullish pennant pattern as the market trends toward the lower angle (near $42,760).
The market is very fragile right now, and the short-term trend is certainly bearish until a breakout of this bullish pennant. On the other side, a collapse beneath the former ATH of $42,000 might send Bitcoin below $40K.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $42,760, $42,000, $40,286-$40,000, $39,240, $38,000.
Key Resistance Levels: $44,000, $44,750, $46,000, $48,000, $50,000.
Moving forward, the first level of support lies at $42,760 (downside 1.414 Fib Extension & lower angle of pennant). This is followed by $42,000 (previous ATH price), $40,286 (.618 Fib), and $40,000. Additional support is found at $39,240 (downside 1.414 Fib Extension – red) and $38,000.
On the other side, the first resistance lies at $44,000. This is followed by $44,750 (4HR 200-EMA), $46,000 (4HR 20-EMA), and $48,000 (4HR 100-EMA). Additional resistance lies at $50,000, and $51,480.
The daily RSI is showing that the bears are in total control of the market momentum. However, it is reaching a similar level to that from January 2021, when the market rebounded again. Additionally, on the 4-hour charts, there are strong signs of a bullish divergence as the price marks lower lows when the RSI makes higher lows. This is a strong bullish indicator and could be suggesting that a rebound is imminent.
Bitstamp BTC/USD Daily Chart
Bitstamp BTC/USD 4-Hour Chart
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.