As Bitcoin (BTC) stays below $40,000, market stress is mounting. BTC has been moving in the narrow band of $39,500 – $40,000 on average for the last 2 days.
Bitcoin (BTC) showed signs of fatigue by failing to close above the previous day's close for the first time since July 20. Today, however, we saw a slightly selling course in Asian trading hours.
Bitcoin daily chart
The current situation is the $40,000 – $45,000 range as a stiff resistance and selling is intensifying in this region. The similarity happened on June 15-16, and not being able to break $40,000 cost Bitcoin bulls dearly. However, the current bullish character may differ from what was seen last month. Let's check the current support levels for a possible pullback.
Based on the last uptrend, according to the Fibonacci retracement levels; First, $38,157 is the most important support. This level is supported by the Fib 0.236 and the 89-day EMA. Hourly closes below $38,000 may deepen the correction.
According to the Bitcoin daily chart, $36,360 (Fib 0.382) stands as Support 2. A drop to these levels will allow BTC to re-enter the falling channel and may trigger a move towards the middle band of the channel. Thus, BTC/USDT Fib could decline to $33,500, around 0.618.
In summary, a day's close above $38,150 may trigger a new rise in the Bitcoin market over the weekend, while a day's close below this price may cause it to move towards lower levels.
The band of $38,000 – $38,500 can be defended by the buyers and if panic selling does not increase, this time it may become a stronger possibility to exceed the $40,000 band, and we can see a momentum towards the first target, $44,000, around $40,000 in the coming days.
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Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.