Bitcoin prices have improved in the last 24 hours, rising more than 12% to $ 36,500 from Tuesday’s low.
When I say that cryptocurrencies are a volatile group, I mean it. Ironically, Bitcoin is one of the most stable assets of the group of cryptocurrencies, which Really underscores some of the volatility that traders have been enduring.
Just Tuesday, Ethereum, Bitcoin, and others were getting hit.
In fact, we wrote about Ethereum, saying that it had to hold the lows (where it met uptrend support) or risk a further collapse.
It remained and Bitcoin as well. But cryptocurrencies are not out of the woods.
We are being bombarded daily, and sometimes hourly, with crypto-related headlines, while big swingers like Tesla (TSLA) – Get report Elon Musk is just one tweet away from moving the markets.
Despite the volatility, there are still large buyers of Bitcoin. For example, MicroStrategy (MSTR) – Get report He recently increased his recent offer to buy more Bitcoin.
All that said, you’re not out of the woods.
Does Jim Cramer believe in Bitcoin? Here’s how you answered that question.
Starting this week, there were some technical concerns with the Bitcoin chart. Specifically, the cryptocurrency was setting a series of lower highs, failed to regain the rising 200-day moving average, and was being pressured by the falling 10- and 21-day moving averages.
It had both short and long-term moving averages against it, while failing to hold its price higher. Lastly, it relied heavily on uptrend support.
Once the support subsided, it led to a collapse. However, while many ask for a test of $ 20,000, which is entirely possible eventually, many failed to see the support zone between $ 30,000 and $ 31,000.
With a good bounce from that level, we know this level still packs a punch, for now.
The problem is that Bitcoin is at the bottom of the previous uptrend support, along with the 10-day and 21-day moving averages.
If you can’t get through this area, we have another lower higher and more resistance from short-term moving averages. That would keep the $ 30,000 to $ 31,000 zone in play, but remember, the more times an area is tested, the weaker it becomes. Notice how each bounce from this zone has become less and less robust.
On a move above the 21-day moving average, see how Bitcoin handles downtrend resistance, then $ 40,000. Above $ 40,000 and a test of the 200-day moving average and the $ 42,000 to $ 43,000 zone may be in store.