Bitcoin (BTC) saw his support for Bitcoin a few days after Elon Musk amid the GameStop fiasco in the stock markets. Since that tweet Bitcoin price has corrected when Elon Musk’s momentum slackened.
Since then, Bitcoin price faces a crucial hurdle in the $ 35,000- $ 35,200 range before testing a new all-time high. Once this area breaks out and turns in support, it is likely to hit a new all time high.
Bitcoin doesn’t stay at $ 35,000 and you need to invest that to get support
The 3-hour chart shows a clear downtrend structure with the outlier of “Elon Musk Pumping”.. This bearish structure has calmed down from its high of $ 42,000 earlier in the year.
This downtrend has seen lower highs and lowswhich can be seen in the graphic. Hence, there is a good chance that this downward trend will continue.
If BTC crosses the $ 35,000 mark, the $ 38,000 resistance zone shouldn’t be a big deal for the bulls. The next large likely area of resistance will be at $ 40,500.
On the other hand, If the price of Bitcoin can’t go above $ 35,000, a re-test of the $ 30,000 level is on the table. Since the $ 30,000 test has gone through a lot of testing since its previous all-time high, there’s a good chance that level will be lost. In this case, Another correction towards USD 25,000-26,000 could be possible.
The 21-week MA costs $ 21,000
Once again, The only indicator that looks for further corrections is the 21-week MA. In the previous bull cycle, it provided sustained support throughout the period.
Yet, If the market corrects further, retesting the previous all-time high in 2017 is unlikely. In other words, everyone will buy there, so the market is unlikely to offer that opportunity.
Hence, there is still a likelihood of a further correction to $ 24,000-26,000, and that along with a test of the 21-week MA would also fill a CME void.
Yet, Such a correction depends on whether the price of Bitcoin could be above $ 35,000.
Bullish scenario for Bitcoin
Detailed diagram and scenario, since the critical area is the $ 35,000 zonewhich, when broken, open the door to new all-time highs.
That $ 38,000 zone could see some consolidation in the near future. However, since BTC has tested this before, it is more likely to see resistance at $ 40,500. So, If the price of Bitcoin is above the $ 35,000 range, it is expected to continue to $ 40,500.
Bearish scenario for Bitcoin
The bearish scenario is straightforward too: $ 35,000 holds up as resistance to further downward moves.
The initial support is the $ 32,000 areathat has been tested several times and is likely to fail as support. The next range is between $ 29,000 and $ 30,000, which has also been tested multiple times for support.
Retesting and failing that level would open the door to $ 25,000. This would coincide with the CME gap and the 21 week MA. Meanwhile, Any previous level of support is confirmed as resistance and the correction continues to set new highs and lows.
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