Bitcoin has been making headlines throughout this year, mainly due to the 123% growth we witnessed from the start of the year to its peak in April, almost reaching $65,000.
As is the case during strong moves, we will experience a correction, and Bitcoin appears to be doing just that. We now need to establish levels of support that price may bounce off.
Support and resistance levels are leading indicators because we will be aware of these levels in advance. Price at the moment has hit support at $42,000, which was previously a resistance level. An indecision candle is currently forming here, but it may be subject to change as this is an intraday candle.
If this level fails to hold price up, we have the $40,000 round number below, followed by the daily 200 simple moving average.
As there are several strong support levels below price, the expectation is that they will hold, for now at least. If these support levels are broken, then this will be an early indication that the trend may have come to an end.
We will then be in a position to manage our positions.
See below for more information on our trading techniques.