Bitcoin finds itself trading around the $44,000 levels, with the low of $42,000 since the weekly close.
What does this mean?
Bitcoin was due to have a correction one of these days, as it was extremely overextended for far too long, A lot of overleveraged positions got cleaned out to reset the funding rate across the board giving the buyers fuel to power another leg up towards the upside.
This will not come without a fight...
The Bullish Bias
Currently holding the support level of $41,950 (being the local high in January 2021) will show of great importance for the next stages of how bitcoins price will move, So far we have done this, Also, the weekly candle closed above the 21 weekly EMA (the green zigzag line) Which is often an extremely strong sign of bullish momentum. We are however trading underneath this level as of this moment. What will need to happen in order to prove the upwards momentum has power, is for the price to go back above the 21 weekly EMA, and use it as support to launch us into the next phase.
If bitcoin surpasses the 21 weekly EMA, then we can expect bitcoin to create new all-time highs. The red resistance box will be the first area to look at after we break back above the 21 weekly EMA. This will be a tough area to break through as it has been resistance for roughly 4 months. But once this happens, we launch on upwards into thin air.
The bearish Bias
If we fail to close this week ABOVE the 21 weekly EMA, then we can expect some more bearish price action for the next coming weeks. Most likely downwards towards the target of $28,000 to $32,000. But lets not count on it.
There are 2 choices, lets aim for the former (Bullish Bias)
What does this mean?
Bitcoin was due to have a correction one of these days, as it was extremely overextended for far too long, A lot of overleveraged positions got cleaned out to reset the funding rate across the board giving the buyers fuel to power another leg up towards the upside.
This will not come without a fight...
The Bullish Bias
Currently holding the support level of $41,950 (being the local high in January 2021) will show of great importance for the next stages of how bitcoins price will move, So far we have done this, Also, the weekly candle closed above the 21 weekly EMA (the green zigzag line) Which is often an extremely strong sign of bullish momentum. We are however trading underneath this level as of this moment. What will need to happen in order to prove the upwards momentum has power, is for the price to go back above the 21 weekly EMA, and use it as support to launch us into the next phase.
If bitcoin surpasses the 21 weekly EMA, then we can expect bitcoin to create new all-time highs. The red resistance box will be the first area to look at after we break back above the 21 weekly EMA. This will be a tough area to break through as it has been resistance for roughly 4 months. But once this happens, we launch on upwards into thin air.
The bearish Bias
If we fail to close this week ABOVE the 21 weekly EMA, then we can expect some more bearish price action for the next coming weeks. Most likely downwards towards the target of $28,000 to $32,000. But lets not count on it.
There are 2 choices, lets aim for the former (Bullish Bias)