WEEKLY BITKOIN FORECAST: LITTLE ROLLED
- Bitcointhe medium-term outlook remains negative, but the cards may have a short-term setback
- Crypto bcan return to the market if BTC /USD manages to keep evenly over the main support in the range of 29 150/28 600 dollars
- If there is a technical setback after the recent sale, the $ 36,000 site would become a potential attraction
Bitcoin’s (BTC / USD) the outlook has deteriorated sharply, falling more than 50% from an all-time high of $ 65,000 on April 14. Although medium-term technical landscape is damaged as the price is currently trading below its 200-day and 50-day SMAs, there are signs that the worst is over and that the temporary bounce may be just around the corner.
One reason for optimism is that the $ 29,150 / $ 28,600 support zone has been very effective in curbing the downturn in recent weeks. In fact, since last year, the price has not been able to close this area on a daily basis. As we can see from the chart below, every time In the area tested, the bulls have since been able to raise prices. The last time this happened was this week, when the BTC / USD fell briefly to $ 29,300 to quickly return to over $ 32,000 in a few days.
In the coming week, when prices hold over 29 150/28 $ 600 floor evenly (line in the sand) and begins to move higher, buyers could be encouraged re-enter the market on the assumption that the weakness will subside and the mass sell-off that has passed its course will be over. If it the scenario materializes, the cryptographic assets may be on the verge of bullish movement key obstacle $ 35,950 / $ 36,675 interval.
Some of the events of the last few days may reinforce the recovery story. For example, JP Morgan’s decision to allow its financial advisers to give all its asset management clients access to cryptocurrency funds can be seen as a downwind of Bitcoin. At the same time, Elon Muski acknowledged that his space research company SpaceX owns Bitcoin and other somewhat supportive comments can also be made about the outlook for cryptocurrencies positive variable, as they may offer some convenience to retailers who thought Tesla was the CEO bail in this market.
Analyzing bullish it is also important to consider downward trends in the results. That is, when Bitcoin turns lowers and falls significantly below the technical barrier of $ 29,150 / 28,600, all recovery bets are excluded as this development could pave the way for a major move towards the negative, capable of taking the mark towards trend line support around psychological limit of $ 20,000.
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—Written by DailyFX market strategist Diego Colman