Bitcoin (BTC) The bulls are trying to bounce back by gathering strength after the price threatens to drop to the $36,000 levels.
Bitcoin price opened this week’s trading session with a drop, creating losses in the markets. Traders should follow Bitcoin more closely for a new bottom. The reason for this is hidden in the technical details.
Bitcoin Price Needs a Bottom
bitcoin priceInvestors expecting a bullish breakout have been greatly disappointed as the coin broke the $40,000 support level over the weekend. Although the BTC price was trading at $ 39,600 at the time of this news, it had risen above the $ 40,000 level before the last checks.
This price level might entice early buyers to get involved. However, there are more bearish signals to watch out for.
Bitcoin price has been giving quite mixed signals lately, but the dollar-cost average approach seems to benefit Bitcoin enthusiasts in the long run. Forecasts last Friday suggested that the bears may have gained momentum after a large bearish candle formed on the 8-hour chart.
Now, as the price prints another bearish candle on the 4-hour chart, the bears have paired the first strength indicator with additional strength and erased all weekend price action from the boards.
Bitcoin’s Relative Strength Index, on the other hand, showed a divergence for the uptrend; however, it doesn’t seem to be in buyers’ territory on the 4-hour chart. Traders must be feeling like they are holding a falling knife, as the rising price action has barely moved after the sale. $39,500 might be a good place for a long-term investor to bid, but for fast traders in the short term it is unlikely to qualify BTC price as a near bottom. Traders will likely look for a drop to $36,000 where there is more liquidity before the March rally.
A invalidation of the bearish thesis would be possible with a close above $40,400. If the bulls can provide price action back to the previous consolidation zone, they may have a chance to break the downtrend. If this scenario happens, BTC price It could drop to 44,000, resulting in a 15% increase from the current BTC price.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.