BTC again created a corrective leg downwards and thus continues in the short-term correction structure, despite the positive divergence of many indicators. The award has entered the first support area, but so far it has failed to find bottom. The dominance of the main cryptocurrency has meanwhile increased and found support on a double day 41.50%.
BTC is on the first support area around $ 42,000. However, in addition to this support zone, we will also monitor support around $ 40,000. This value is reversible and crucial throughout the sideway structure of BTC, which lasts about 16 months. I expect a bounce off from the minimum in this area upwards.
BTC in a bear flag
Bounce off from support about $ 40,000 doesn’t mean will find the absolute bottom. In such a turnaround, we need to reach a growing minimum and maximum. In case the price falls below support flags, we will monitor the values of $ 35,000 and $ 30,000. Zone around $ 30,000 is the lower limit of the long-term sideway structure.
The most bearish scenario we monitor on a weekly chart on the MA200 indicator. It currently stands at $ 21,000, but as long as the price drops, the indicator could easily rise by a few thousand dollars. However, it is not yet necessary to monitor this indicator, although it has always represented it in the past ideal purchase.