Bitcoin (BTC) comes down to support – bounce loading
After being rejected from $72,000 just over a week ago, the $BTC price has come down to test support at $67,000. A bounce here, or perhaps a bit lower at $66,000, could be the next move for bitcoin.
$BTC at strong support
Source: Coingecko/TradingView
In the daily chart above, the $BTC price is still meandering along inside the bull flag, although within the bull flag some levels of support have developed. If $BTC can stay above these supports the likelihood is that the descending trend line will squeeze the price into making a move in one direction or the other.
If the price were to break downwards, there are other levels of support, and if it came to the worst, the price would be unlikely to break downwards through the bottom of the bull flag.
A bounce is coming
From a more bullish perspective, all the short term stochastic RSI indicators have bottomed, and even the daily isn’t far from bottoming. A bounce is going to happen, and whether that’s later on Wednesday, or later in the week, it is probably going to happen.
A target for the bounce would be the descending trend line that forms the top of the bull flag, but more importantly, the resistance level at around $71,300 would need to also be broken.
An extremely bullish macro outlook
Source: Coingecko/TradingView
The more macro outlook of the weekly time frame tells a story. The $BTC price is safe above the weekly candle close of the previous 2021 bull market, and as long as this is the case, things look extremely bullish. It’s also interesting to note how volume has continued to tail off since the beginning of the bitcoin bull market. This could point to more and more investors just holding their $BTC and not trading it. An explosion could be in the tea leaves – it’s just a matter of when?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
