- Bitcoin fell 3.5% today as the cryptocurrency attempts to defend the support at $32,650 (.618 Fib).
- The cryptocurrency continues to trade inside a short-term symmetrical triangle but is testing the lower angle.
- All eyes continue to look for $31.5K support to hold.
Bitcoin is down 3.5% today as the bulls attempt to defend a short-term .618 Fib Retracement support at $32,650. The cryptocurrency has been trending beneath the 20-day MA at $34,000 for the past week and has been unable to close a daily candle above it.
It also trades inside a short-term symmetrical triangle pattern as the lower angle of the triangle is currently being tested.
Bitcoin Price Analysis
What has been going on?
The 4-hour chart shows a little more perspective on where we are in the short term. We can see that BTC broke beneath the previous symmetrical triangle pattern last week but found support at $32,120. From there, it started to slowly grind higher over the course of the past 7-days inside an ascending price channel.
Unfortunately, BTC met resistance at the falling trend line and rolled over. It then broke beneath this rising price channel over the weekend but is now battling to defend the support at $32,650, provided by a short term .618 Fib Retracement level. This support defended the market in early July and is expected to provide strong support moving forward again.
Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.
Looking ahead, the first solid support lies at $32,660 (.618 Fib Retracement). This is also bolstered by the lower angle of the symmetrical triangle on the daily chart.
Beneath the triangle, support lies at $32,122 (last week’s low), $31,500 (support provided by the June double-bottom formation), $31,555 (long term .886 Fib Retracement), $30,600, and $30,000.
Where Is The Resistance Toward The Upside?
On the other side, the first solid resistance lies at $34,000 (20-day MA). This is then followed by the upper angle of the symmetrical triangle pattern at around $34,400. Above this, resistance lies at $35,460 (50-day MA), $38,435 (1.272 Fib Extension), $38,360 (1.313 Fib Extension), and $40,000.
If the buyers can finally break $40K, the first ressitance above it would lie at $42K, which is the upper angle of the current established range and a break above there would turn the market bullish. A combination of resistance around $44,200 would then be significant resistance to overcome after that. This is provided by the beraish .5 Fib, and the confluence of the 100-day and 200-day MA levels.