The crypto space witnessed yet another price slash some hours before as the star crypto slashed below the crucial $40,000 price zone. Moreover, the attempt for a strong rebound is also been challenged strongly by the bears. Even if the Bitcoin price attempts a flip, the asset is still primed to slash below $38,000 very soon. And hence the traders need to be very cautious when opting for a long trade considering the current minor rebound.
On the other hand, the recent drop just appears like a deviation from the range but not an actual breakout. And hence, more possibilities of the BTC price finding strong lower support at around $37,000 emerge. These are the crucial ranges that may hold the rally strong and assist in a rebound. But if the price slashes from these levels the lows around $30,000 may be fast approaching slicing through the crucial support at $32,000.
However, the BTC price still showcases some strength in the rally and hence the possibility of an uptrend still hovers within the space.
Here the analyst, believes the BTC price rally is still strong as the TSI or the True Strength Indicator is attempting a flip. The TSI indicator is a technical momentum indicator used to identify trends and reversals. A dump below the lower support levels had ignited a bearish trend previously. Therefore, with a strong bounce off from the lower support, the price is expected to resume with the uptrend.
So where will the Bitcoin(BTC) price head from here?
- Bitcoin price in the daily time frame appears to have halted the descending trend to some extent but the pressure on either side continues to mount
- However, the buyers are expected to get exhausted soon, which may ignite a notable descending trend towards the lower support at $37,700
- These levels could hold the BTC price and assist a minor flip, but eventually, the lower support along the trend line may act as the strong supply
- Failing to hold here may ignite a bearish trend towards $32,000 but the RSI displayed a clear bullish divergence and hence a rebound may be fast approaching
- On the other hand, a significant amount of selling pressure has been mounted, and hence the price may witness a minor descending consolidated trend until the day’s close.