The positive voices from many analysts that the price of Bitcoin has reached its lows and that it’s a good time to get back into buying helped the overall cryptocurrency markets rally on Friday. BTC has been able to recover after stopping its decline at the $17,590, and 18-month low level. Meanwhile, uncertainty remains very high and BTC might continue to experience volatility and profit-taking after Bitcoin posts a short-term rally. Overall, BTC/USD appears to be due for more correction over $20,000 after its recent downturn slowed down and has entered a new consolidation phase. In the medium term, “sell the spike” remains the most adopted strategy by traders. After its lengthy sideways pattern was broken to the downside, Bitcoin (BTC) has been experiencing a rapid sell-off since early June.
Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support Levels: $20,000, $16,000, $12,000
BTC/USD Daily ChartTechnically, the pair’s main goal is to return to the psychological hurdle of $30,000 and beyond after recovering from the low of $17,590. The rebound served as the foundation for an upside continuation chart pattern in light of the recent significant pullback from the Ju e confluence zones.
On the other hand, any move below the $20,000 zones, which correspond to the weekly swing lows, might support the retracement scenario and drive the pair back to the $17,590 low levels. Any further selling in the near term should open the door for a move to the $16,000 marks and support area.
BTC/USD 4-Hour ChartOn a 4-hour timeframe, the BTC/USD trend is stable after its recent decline, and the intraday bias is currently consolidating. With a test of the recent low of $17,590 near the rising trendline support, the rebound from lows might continue. As long as the $20,000 confluence level holds, the trend may continue to be favorable.
The bias may shift upward and allow a retest of the $25,000 level with a break above the minor resistance level of $28,000 on the upside. The break may signal the start of a larger rally from $17,590. A definite violation of the $20,000 zones, meanwhile, might trigger a more significant plunge.
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