In the middle of another volatile weekend for Bitcoin, the primary cryptocurrency is up by 11% from the $30K low that was recorded yesterday, and is now facing resistance above $33K. On Friday, bitcoin saw a sharp drop from the $35k price area until finding support at $30k on Saturday.
Looking at the following short-term 4-hour’s chart, this was the fifth time the $30K price range ‘saved’ bitcoin since May-19.
The Daily Chart: Bullish Double Bottom?
As mentioned in our most recent BTC analysis, the coin was trading inside a short-term ascending triangle pattern. It did manage to break above but struggled to overcome resistance at $35,000 on Friday, and the breakout quickly turned into a fake-out (false breakout).
From there, the bears popped, and BTC’s price dropped towards the $30-31K area once again. The primary cryptocurrency created a lower 4-hour closing candle at $30,600 (downside 1.618 Fib Extension) before touching as low as $30K (yesterday) but has since rebounded nicely. Over the past hours, Bitcoin was able to recover over $3K from Saturday’s low.
Additionally, BTC did not close (daily candle) beneath the $31,500 level on the daily chart. This is the same level it closed last week when BTC spiked as low as $28,600 on Tuesday. The closing candle at $31,500 has now put a potentially bullish signal in the form of a double bottom pattern that might be forming on the daily chart.
So far, the “demand wall” around $30-31K seems to be holding well, whereas any slide to that range gets quickly gets bought up. This could be a sign that we might be reaching the end of this short-term bearishness, as long as the $30k price level holds.
However, for the mid and long-term, BItcoin is still “stuck” inside a choppy trading range between $30K and $42K for approximately 1.5 months since the liquidation event, which took place on May-19, 2021.
BTC Price Support and Resistance Levels to Watch
Key Support Levels: $32,000, $31,500 – $31,200, $30,600, $30,000, $29,350.
Key Resistance Levels: $33,500 – $34,000, $34,800, $35,700, $38,000, $39K.
Looking ahead, the first resistance lies between $33,500 and $34,000 (mid-term descending trend line). This is followed by $34,800, $35,700 (20-day MA and weekly high reached on Friday), $38K, and $39,000 (50-day MA).
On the other side, the first support lies at $32,000 (today’s low). This is followed by $31,500 – $31,200 (June daily closing support & downside 1.618 Fib), $30,600 downside (1.272 Fib Extension), $30,000, and $29,350 (downside 1.414 Fib Extension).
The daily RSI remains within bearish territory but did create a new higher low, indicating that the bearish momentum is fading a bit.