Bitcoin has been showing mixed signs ever since it dropped from $58,000 to $48,000 in a single day, which was the biggest single day crash in the history of this asset.
There are certain levels that need to be claimed to decide the bullish or bearish continuation for BTC price. BTC pulled an impressive rally in the past 5 months, so a temporary pull back was expected. Such corrections are always healthy for long-term continuation of a bullish momentum.
Let us analyze BTC price.
There has been a drop in the BTCUSDLONGS and the graph shows that the number of longs have now reached a support zone from where we should be able to see a reversal.
BTCUSDSHORTS chart suggest that the number of shorts opened for BTC are ranging between the support and resistance zones. A break below the support zone could be a bullish sign for BTC.
BTC/USD – Daily
In order for BTC to be bullish, it has to clear the resistance at $52,000. The first attempt to clear the resistance after dropping down from $58,000 was rejected. BTC has made a second attempt to clear the resistance today, which has been rejected again. If it can make further attempts to clear this resistance, we can start seeing a move towards $57,400. Failure to break the resistance at $52,000 could lead to a drop towards $46,500 and $42,000. As long as BTC stays above $42,000, it will continue to stay in the bullish zone. Breaking $42,000 could trigger a bearish momentum in BTC.
Key levels to watch for BTC are $52,000, $46,000, and $42,000. Above $52,000 BTC will continue the bullish momentum beyond its all-time high price and below $42,000 will lead to a bearish rally in BTC towards early $30,000. Between these two points, BTC could provide great scalping opportunities.
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