Big support levels held, and after weathering quite some storm Bitcoin (BTC) is beginning to recover. A $7,500 price rise over the weekend, since descending to $80,600 on Friday, has done much to suggest that the worst is over. However, was this the actual bottom?
Will $BTC hold these levels?
Source: TradingView
The 4-hour time frame for $BTC shows that the price gathered itself at the $82,600 horizontal support level. This isn’t a particularly strong level but having previously fallen through the major trendline, the price needed to come back up to confirm or nullify the breakdown. Happily for the bulls they were able to push the price back above the trendline. A retest is probably needed now on this side of the trendline
While the price is trying to consolidate above the minor descending trendline (faint dotted line) it is likely to perhaps slide back down this line, and may go back under the major trendline, given that the short-term momentum indicators are now overbought
As long as the $82,000 horizontal level holds, a little dip now could form a double bottom, from which the price can genuinely start to rally all the way back up. If this bottom does not hold, $73,000 would be a likely target.
0.786 Fibonacci lends its support
Source: TradingView
The daily time frame for the $BTC price reveals that besides the major trendline, the 0.786 Fibonacci level could be playing a major role here. The price has bottomed on this deepest level, setting up a perfect place for a bounce. That this level is also decent horizontal support, and the fact that the Stochastic RSI indicators have crossed back up, both add weight to the thesis of a bounce from here.
High time frame momentum indicators have reset
Source: TradingView
The 2-week chart illustrates that this current $BTC retracement could be at or near its end. The major trendline so far appears to have arrested the slide. If there was one more dip to the downside, the $74,000 level down to $69,000 (the top of the last bull market) is an incredibly strong support
In addition, there is a hugely powerful indicator in the form of the 2-week Stochastic RSI. It can be seen that the indicator lines have now touched bottom. Along with the weekly Stochastic RSI, these are likely to signal massive upside price momentum, perhaps in the next couple of weeks or so.
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