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BTC analysis – where is the nearest support for short term correction?

2 min read

BTC returned below MA21 at period 4H and in the short term produced a correction leg. Where does this correction end? RSI continues to have a negative divergence, and volumes on the part of bears have started to exceed those on the part of bulls. During the last decline of BTC, the BTC dominance was also corrected, which is 45.16% at the time of writing.

After reaching a maximum of $ 57,850, BTC created a short-term correction leg. Growth thus stops for a while and the price did not maintain MA21. We’re still watching the area support at $ 53,000, where the previous long-term local maximum is. Another support zone is around the $ 51,000 level, where it is for a change resistance from previous highs, which can serve as future support.

BTC / USD 4H.  Source: TradingViewBTC / USD 4H. Source: TradingView

BTC has been still bullish for a long time

BTC increased by 41.60% in just 12 days without any major correction. Since the last maximum, the price has decreased by only 3.80%. The current decline is therefore still negligible. However, over time, such growth must also face a more serious correction. In the short term so far the declining trend continues.

We will use 123 bottom formation to identify the reversal of the trend, as well as an increase in bull volumes, which must exceed those of bears. In the long run, sentiment has not changed and it is still true that we are at the beginning of the second part of the bullrun. In the short term, however, the price must cool down.

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