Bitcoin Technical Analysis: BTC Price Approaches Key Support Level
Bitcoin prices are showing some strength here, and it is very crucial to understand the overall trend as it is very easy to get lost in the small timeframe noises.
Bitcoin Price Analysis
1 Week Time Frame:
Weekly Bitcoin price briefly fell below 61.8% Fib level, but bull manages to push the price upward, and now it is supported by 61.8% Fib level at $7232, and by 49 days SMA (Simple Moving Average) represented by a green line. Next resistance levels are 50% Fib and 38.2% Fib level, which are $8492 and $9751 respectively, and these levels also almost coincide with 9 days SMA (solid blue line) and 21 days (solid white line) SMA. Till the BTC price is above $6010 represented by an orange dotted-straight line, which acts as the last support for this trend, which started in February this year.
RSI is at 43.90, which bounced from the previous support marked by the red dotted line, and it is approaching the apex of the triangle suggesting a big move in either direction.
Stoch RSI (Stochastic Relative Strength Index) is already in the oversold region and suggesting some buying pressure building up waiting to be released.
In spite of all the noises produced by other technical indicators on all time frames, OBV (On Balance Volume) clearly shows that the volume is still at the positive side and following the trend line, although the price of Bitcoin may not reflect it yet but given the OBV indicator making Higher Lows, indicates the prices may see an upward push.
1 Day Time Frame:
Today, Daily BTC price got rejected by 21 days SMA represented by a solid white line in the below given daily chart and now has found its support at 9 days SMA, just above the weekly 61.8% Fib level (refer above weekly chart). Current prices are trying to do S/R (Support/Resistance) flip of 23.6% Fib level at $7485. Daily prices are making Higher Lows, and for the Swing or Day Traders, TP (Take Profit) areas can be set as per the different Fibonacci levels at $8071, $8542, and $9023 (marked by yellow lines) respectively.
Conclusion:
The overall trend of Bitcoin is still Bullish as the prices are still above $6010, daily levels are looking good, and as per Bitcoin prediction, BTC/USD prices seem to found their support at a weekly 61.8% Fib level and making higher lows. Swing traders have some opportunity here to make some easy money based on Fib levels. Nevertheless, as Bitcoin Halving is approaching fast and considering the last local top of $14K per BTC price, current prices can be seen as a 46% discount and continue to increase your portfolio by stacking some Sats.
