Looking for potential support if BTC breaks down beneath the $40k level, which happens to coincide with previous support and the SMA(200). That should be strong support and with luck will be the end of the bleeding, but given the speed of the move, we have to be thinking about what may come next should the support fail.
The next recent support level was around $31,500, but that is relatively weak, so it appears likely that if the $40,000 level / SMA(200) is broken, the price could extend down to the $20,000 level where there has been strong resistance in the past.
The next recent support level was around $31,500, but that is relatively weak, so it appears likely that if the $40,000 level / SMA(200) is broken, the price could extend down to the $20,000 level where there has been strong resistance in the past.
Comment:
It need to happen soon or we'll be in death-cross territory. The SMA(50) is rapidly converging on the SMA(200) on the daily chart.
Once that happens, half the algos on the planet are going to sell out of their positions as they will recognize it as a symptom of a bear market.
Once that happens, half the algos on the planet are going to sell out of their positions as they will recognize it as a symptom of a bear market.
This played out as feared. However, now we find support at the $40k psychological level, the 4-hour SMA(20), and long-term resistance that has turned into support.
If BTC breaks above the $40k level, there would be reason for optimism, but it needs to happen soon!