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BTC Price Analysis: Bulls Capped Under $39K After Rebounding Below $33K Only Days Ago

BTC
  • BTC extended losses falling below $34K on Jan. 24
  • Markets saw some signs of recovery as BTC/USD rebounded to $38,995 in the prior day
  • Bitcoin is experiencing dip buying on one side and still cautious investors on the other side

Bitcoin has had a terrible couple of months, plummeting more than 50% from its highs and appearing particularly prone to more losses. BTC extended losses falling below $34K on Jan. 24 as the crypto market is closely linked to Wall Street (especially Nasdaq). Markets saw some signs of recovery as BTC/USD rebounded to $38,960 in the prior day. However, Bitcoin has made its quick rebound from $32,933 unsustainable in the near term as bulls remain capped under $39,000. At the time of analysis, BTC/USD is trading at $35,712, losing almost 3% in 24 hours and nearly $15% weekly. Investors now believe the sell-off has gone too far as cryptocurrencies‘ alignment with stocks remains unresolved. Bitcoin is experiencing dip buying on one side and still cautious investors on the other side as crypto markets seemed to be a bit surprised that the Fed showed clear determination to push its tightening plans forward. Bitcoin might sustain its support, but if that breaks, it might be a freefall beneath the $30,000.

Key Levels
Resistance Levels: $43,000, $40,000, $37,500
Support Levels: $35,000, $33,500, $30,000

BTC/USD Daily Chart: Bearish

BTC/USD Daily Chart

BTC is under pressure as global markets remain risk-averse. After a bearish breakout, its rebound has struggled above $35,000, towards the $39,000 as the sell-off abates. The BTC/USD might test the previous low at $32,933 if it goes beneath the $35,000 support, endorsing the negative outlook.

However, there could be buying interest in the $35,000 congestion area if the relative strength index (RSI) plunges into the oversold band between 30 and 20. The bulls will have to break through $40,000 to change the sentiment and have to go through $39,000 to do so. A deeper correction might push the price to $28,000.

BTC/USD 4-Hour Chart: Bearish

BTC/USD 4-Hour Chart

BTC/USD has experienced noticeable declines in the four-hour chart, crossing beneath both the moving averages (MA 50 and MA 200). However, the pair managed to bounce back but has found significant resistance around the MA 50 on the $38,960 level. A break above the latter could turn the fortunes around for the pair.

Short-term momentum indicators support a negative bias as the relative strength index (RSI) is now below its 50 neutral mark. Should the bears maintain control, the first line of support might be found at the $33,500 barrier. On the flip side, if buyers manage to retake control, the price may meet initial resistance at the $37,500 hurdle.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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