Bitcoin has recovered into its former range between the 0.236 Fibonacci level at $10,446 and $10,000 after prices crashed a further 3% yesterday, around 15:00 (UTC+1).
This level took over nine days to favorably straightforward earlier in the month. It could hold prices contained again if volume remains low. On the 4-hour timeframe, we can also see long wicks above the last four candles, which suggest bears are defending this healthy resistance level vehemently.
The unfinished CME gap below is now looking like a possible threat once again if BTC bulls fail to recover from this period of consolidation.
Price Levels to Watch in the Short-term
Right now, all eyes are on BTC closing above the 0.236 Fibonacci level on the 4-hour chart at $10,446 and breaking out of the range early. From there, the next likely bull target above would be the $10,580, which has consistently been a critical S/R level for BTC since July 28, 2020.
Above that, we have the 50 EMA line (blue) at $10,700 and the 0.382 Fibonacci level at $10,836 as the next significant targets if BTC continues retracing back towards $11,000. This particular Fibonacci level is also being reinforced by the 200 EMA, making a breakout above this line even more difficult.
Examining below, we have the direct channel support (yellow line), which recently caught the crash’s bottom, as mentioned earlier yesterday at around $10,290. This will remain a significant area to watch as it has not been closed beneath since April 26 on the daily chart. If this were to happen, it should be construed as a significant bearish warning.
If prices continue to break downside, then the central support zone (green) between $10,200 and $10,000 should provide a safety net for bitcoin’s price from falling into the CME gap below.
BTC falling into the oversold region on the 4-hour RSI should also create some buying pressure to prop up prices if there is another sharp decline soon.
Total market capital: $335 billionBitcoin market capital: $193 billionBitcoin dominance: $57.7%
- Data by Coingecko.