BTC bounced off a point of control of $ 37,770 and created a local minimum. It will now be essential to monitor whether the price manages to overcome long-term resistance, or whether it was only a deterrence within the correctional leg. However, retracement occurred relatively soon.
BTC found support on the target we defined in the previous analysis and is likely to create at this time local maximum at $ 40,000. But we must not forget that if the price will go up, awaits long-term resistance, which amounts to about $ 41,000.
On the other hand, the failure of the second contact with the point of control is still at stake. In that case, the price would continue in the correction leg and we would look for the bottom. The point of control level is therefore crucial. At this level there is even a retracement of 38.2% of the growing leg.
BTC has long been a sideway
The price in the next hour will probably go down, but the key will create higher local minimum than at the point of control level. Then we will monitor whether the price manages to overcome the mentioned resistance or not. However, if a higher minimum is not created, the correction will continue.
For now, the RSI continues to decline and the indicator also confirms a short-term stop on the resistance of this flag. if it will be correction continue, RSI should stop at the limit of oversold and start to create a positive divergence.
In the long run, BTC’s market price is still in the sideway structure, which has been in place for two and a half months. This sideway structure is defined as an accumulation zone because it occurred after a sharp correction. Therefore, this storage zone can be shopping area for long-term hodling.
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