After the sharp fall in cryptocurrencies, Bitcoin (BTC) again tests its support at $ 30,000 – What now?

Bitcoin drops to $ 30,000

This is a level we have not seen since July 2021. The price of Bitcoin (BTC) at the time worked its support over the summer, before bouncing back towards its all-time high. $ 69,000which until then delivered an undecided market and fear.

Figure 1: Bitcoin weekly price chart (Weekly)

Here we are again, but this time with a very different economic and political context. Record inflation rates and adverse falls traditional markets in the context of the war in Ukraine which destabilizes investors and overrides all the uncertainties of this market for cryptocurrencies however we have seen the positive announcements continue to flow in recent months.

So, will we be able to repeat the July 2021 case, during which the price had experienced its final refund before the ATH? Or are we about to dive even lower than last summer? Remember that the graph above is on a weekly scale. Each candle lasts for a week so it may take several weeks or even months for each goal we discuss.

Technical analysis shows the market psychology. We have proof of this again in images since the $ 30,000 support after allowing the price to rebound steadily over the past year. It is a round number under which the price is determined by how far and how cheap the players in this market are, and which has always prompted a bullish rally towards a new ATH in the aftermath. Therefore maintaining this level is very important. A rebound would allow us to move forward again towards the mid-range at $ 40,000then could to the top of this range around the $ 65,600.

In the event of a break from this last key level at the weekend, on the other hand, there will be the next level support will at $ 26,000 (Mias Kijun), then to $ 22,869 (SSB dish). In fact, on the system Ichimoku allows us to plot the next levels of support taking into account the apartments made by the Tenkan and the Kijuncurves that magnets often influence the price.

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The bearish objectives that have already been achieved

Don charter traders, the current level corresponds to a profit taking level after a bearish breakout. In fact, the Daily chart offered us a Bearish Channel very relevant with at least 3 points of contact on each side.

Figure 2: Bitcoin daily price chart (Daily)

The purpose of this chart figure correspondence to the height of the channel, which is described at the breaking point and we can note that the current Bounce is made precisely at this level, which also corresponds to the Weekly support previously known on the Ichimoku.

So what are the next short-term steps? After this strong fall, the Bitcoin lost far from Game Daily Tenkan which is now at $ 35,000. A retrial of this curve should be considered since we are in a current situation over-selling (Tenkan and Kijun far from the price and relatively large space between them).

In any case, it will be crucial to pass over the Kijun to $ 36,400 this support that could again play the role of resistance. For a break at the end of $ 29,740the price could then start falling again towards the next support at $ 26,000 (Weekly support).

Completed

The IS cryptocurrencies counting on rebound i Bitcoin thanks to his Weekly and Monthly Supports around the $ 30,000. After each ATH, the price never fell below the ATH of the previous cycle. If history happens again, then the $ 20,000 should be preserved.

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Chartered Sources: TradingView