What’s next for Bitcoin after it drops to $ 42,000 and recovers? – .

What’s next for Bitcoin after it drops to $ 42,000 and recovers? – .

Bitcoin prices have experienced intense volatility of late, falling to their lowest since September.

The digital currency hit $ 42,019.86 yesterday, according to figures from CoinDesk.

At this point, the cryptocurrency has fallen almost 40% from the all-time high of nearly $ 69,000 it reached last month, additional data from CoinDesk reveals.

To explain this sharp drop, several analysts have pointed to the cash sale. The resulting downward price movement fueled a long squeeze, creating further losses, CoinDesk reported.

Since then, the digital asset has rebounded, repeatedly rising to $ 50,000 yesterday and today.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Following these latest price movements, several technical analysts have been looking at key support and resistance levels that market watchers should watch for going forward.

Critical resistance levels

Ben McMillan, CIO at IDX Digital Assets, commented on the issue, stating that “$ 50,000 will be a key psychological level that the bitcoin bulls will be watching to see if bitcoin can bounce back quickly into the $ 50,000 territory and hold. ”

“After that, $ 53,000 was the key level that encountered some resistance in September as well as during the October rally,” he said.

Armando Aguilar, vice president of digital asset strategy for Fundstrat Global Advisors, also highlighted the key levels bitcoin could reach if it continues to rise.

“Tradingview.com indicators show us that [the] the resistance zone is $ 52,000 to $ 53,000, if resistance breaks these levels we see the next resistance level being around $ 57,000 to $ 58,000.

Aguilar also referred to the recent improvement in the Relative Strength Index, a momentum indicator that analysts use to better understand whether an asset is oversold or overbought.

“The RSI has hit a higher low despite the market downturn,” he said. “It’s important because it provided a good sign for the speed of recovery. ”

Important levels of support

Experts have also shed some light on where bitcoin is going if traders push it down.

“As expected, after passing under the daily Ichimoku cloud, the price of Bitcoin touched two of the three key psychological levels plotted by Fibonacci on Saturday before correcting some of the losses,” said Kiana Danial, CEO of Invest Diva.

The indicator she mentioned, the Ichimoku Cloud, takes multiple averages and integrates them into a single chart, which then displays an asset’s trend, momentum, support, and resistance.

“On Sunday, the BTC / USD pair opened below the 50% Fibonacci retracement level of $ 49,500,” she said. “This indicates that the bearish momentum has not completely stopped yet. ”

“Key support levels following the Fibonacci retracement strategy are now at $ 44,800 and $ 40,700, with the neckline of the potential long-term double top chart pattern standing at $ 31,000. “

McMillan also commented on the significant price levels the world’s most important digital currency could experience if it goes down.

“On the downside, $ 47,000 to $ 48,000 is the level of support bulls would like to see continue. If bitcoin drops back below this threshold, then it could quickly retest $ 40,000 to $ 42,000, ”he said.

Aguilar also commented on the matter, noting that “Traders should closely watch resistance levels of $ 52,000 to $ 53,000 as this could cause the market to overreact and retest levels in the middle of $ 40,000 ”.

Katie Stockton, Founder and Managing Partner of Fairlead Strategies, LLC, provided additional perspective on recent price movements and the outlook for bitcoin, suggesting that traders use a ‘wait and see’ approach in a tweeter she posted yesterday.

“An overnight downdraft has #bitcoin below a widely watched support of $ 53,000 – it’s rarely a good idea to sell in this kind of move, instead wait and see if the outage is confirmed (we will know by Monday), ”she wrote.

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and soil.


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