Bitcoin Chart Analysis - Strong Dump to Start the Week!

Bitcoin Chart Analysis

Bitcoin Chart Analysis - Strong Dump to Start the Week!Bitcoin Chart Analysis - Strong Dump to Start the Week!Source: Tradingview*

Bitcoin is off to a very weak start to the new week. After being above USD 47,000 yesterday, it went down to as low as USD 42,400 at times. Currently we are at around 43,700 USD.

We have broken through all of our support zones on the way down without stopping. A small support zone at around 42,300 – 42,400 then saved us from worse.

RSI is in oversold territory on the smaller time frames (1-8H).

Bitcoin Outlook

Bitcoin Chart Analysis - Strong Dump to Start the Week!Bitcoin Chart Analysis - Strong Dump to Start the Week!Source: Tradingview*

To get a more detailed view, let’s take a look at the Fib. Retracement level to help us and draw this from the bottom at around USD 29,000 to the top at around USD 52,800.

Here we can see that from USD 41,000 we have additional support from the 0.5 Fib. Retracement level. Additionally, we have another strong support zone there. If this fails to hold in the event of a further sell-off, we will have to reckon with the golden pocket (0.618 – 0.65 Fib. retracement level) in the worst case scenario.

This is currently at approx. 38,000 USD. Under no circumstances should we close one day below this level, otherwise we could be threatened with a bear market.

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