When in doubt zoom out is a common statement in the Bitcoin community. So, let's do so by looking at the weekly timeframe.
Bitcoin formed a strong base between the blue 50% Fibonacci level at $16,350 and the 2017 high of $18,000 in the 1H203 and has gone on to touch a yearly high of $31,295. The resistance rate between the black 38.2% Fibonacci retracement level of $27,580 and $29,500 has however held its ground. Bitcoin is currently testing its 200-week MA rate of $26,450 and a break below this support rate will see it slide lower onto the 50-week MA rate of $22,245 which coincides with the black 23.6% Fibonacci retracement level and the blue 38.2% Fibonacci retracement level.
The support on the 50-week MA is crucial. A break below it will allow bears to pull Bitcoin back into the base formed in December 2022 and January 2023. If the 50-week MA holds it ground Bitcoin will however be geared to move higher and test the resistance rate between $32,945 (black Fibonacci retracement level) and $35,000 (blue 23.6% Fibonacci retracement level).
In terms of technical indicators, the weekly MACD is holding a sell signal and the RSI still has room to drift lower before hitting oversold levels. I will personally be a buyer at levels around the 50-week MA rate.
Bitcoin formed a strong base between the blue 50% Fibonacci level at $16,350 and the 2017 high of $18,000 in the 1H203 and has gone on to touch a yearly high of $31,295. The resistance rate between the black 38.2% Fibonacci retracement level of $27,580 and $29,500 has however held its ground. Bitcoin is currently testing its 200-week MA rate of $26,450 and a break below this support rate will see it slide lower onto the 50-week MA rate of $22,245 which coincides with the black 23.6% Fibonacci retracement level and the blue 38.2% Fibonacci retracement level.
The support on the 50-week MA is crucial. A break below it will allow bears to pull Bitcoin back into the base formed in December 2022 and January 2023. If the 50-week MA holds it ground Bitcoin will however be geared to move higher and test the resistance rate between $32,945 (black Fibonacci retracement level) and $35,000 (blue 23.6% Fibonacci retracement level).
In terms of technical indicators, the weekly MACD is holding a sell signal and the RSI still has room to drift lower before hitting oversold levels. I will personally be a buyer at levels around the 50-week MA rate.
