Bitcoin fell again last week for the second consecutive week, finally breaking below the key support level at $42,651 which now looks like it has flipped cleanly to become new resistance. Bitcoin has just made its lowest weekly close since July 2021. These are clearly bearish signs, but I see the nearest support level at $38,728 as likely to be very important. If this support level breaks down, I can see the price continuing lower to reach the base at about $32k which was formed last summer.
If we get a bullish daily candlestick bouncing off $38,728 that could be a long-shot long trade entry with a good potential reward to risk ratio. Alternatively, a daily close in BTC/USD below $38,728 could be a good short trade entry signal targeting $32k.
If we get a bullish daily candlestick bouncing off $38,728 that could be a long-shot long trade entry with a good potential reward to risk ratio. Alternatively, a daily close in BTC/USD below $38,728 could be a good short trade entry signal targeting $32k.