BTC is hanging around in a Neutral Zone

2 сент. 2023 г.

since August 17, Bitcoin has been trading in a sensitive price range. On the downside, Bitcoin's main support is around $25,000. This range (blue box) was BTC's main resistance in the past and for the entire of 2022, and as you can see in the chart, in an inverse head and shoulders pattern, this price was the neckline of the pattern. Also after the break in March 2023, this range became a major support and prevented the price from falling further twice. Also, using the retracement Fibonacci tool on the Bitcoin chart, we find that the mentioned range is around the 0.38 Fib level. Also, $25,000 can be considered a psychological support for Bitcoin.

On the upside, Bitcoin is facing resistance at $28,800. A main block order is placed around this price. Also, the mentioned price range (red box) corresponds to the 0.38 fib retracement level of Bitcoin's previous bullish wave, which started at $25,000 and extended to Bitcoin's ATH in 2023. In addition, a bearish trend line can be drawn on the recent movement of Bitcoin, which has also created an overlap with $28,800.

Bitcoin must be able to define its position within this range (from the main support to the $28,800 resistance) to register any serious and sustained movement. As the price falls and the key support at $25,000 is broken, Bitcoin bears are activated. Possible selling volume could cause Bitcoin to drop to its next support around the 0.61 retracement fib level and $21,000 price. On the other hand, with the price of Bitcoin crossing the resistance of $28,800, it is possible that the bulls come in and the price of Bitcoin can move up to $30,000.