BTC New Support Established at 41k, Reversal in Motion
Hi fellow traders,
It seems the bears are getting exhausted. The bulls appear to have found new support at around 41k. In my opinion, the probability of moving further down is diminishing as investors regain confidence to buy -- the price has recovered by over 2k since it hit 40.6k yesterday.
Looking at the hourly time-frame:
- Next immediate resistance level is now @ 42k
- Next immediate support level is now @ 40k
---------------------------------------------------------------------------------------
To recap, we broke the previous strong support at 45k after five attempts (in December), paving way for the huge slump witnessed as we ushered in New Year. The following factors contributed to the devastating New Year slump:
- The Omicron variant scare
- Protests in Kazakhstan, world's second largest BTC mining hub
- China's fresh round of crackdown, tightening the noose
- Reports that FED could raise interest rates soon, which would push up cost of doing business
With these and other factors in mind, it is fair to say the bulls are not yet out of the woods; slump could continue all the way to 39k if the bulls fail to hold strong at 41k.
In the event we go down further, we have the following key price levels to watch:
- Next immediate support is @ 40k
- Second strong support zone is @ 39k
At present, I would recommend a formidable Stop Loss just below 40k.
Please compare notes; do your own analysis. This is not a financial advice.
Thank you.
It seems the bears are getting exhausted. The bulls appear to have found new support at around 41k. In my opinion, the probability of moving further down is diminishing as investors regain confidence to buy -- the price has recovered by over 2k since it hit 40.6k yesterday.
Looking at the hourly time-frame:
- Next immediate resistance level is now @ 42k
- Next immediate support level is now @ 40k
---------------------------------------------------------------------------------------
To recap, we broke the previous strong support at 45k after five attempts (in December), paving way for the huge slump witnessed as we ushered in New Year. The following factors contributed to the devastating New Year slump:
- The Omicron variant scare
- Protests in Kazakhstan, world's second largest BTC mining hub
- China's fresh round of crackdown, tightening the noose
- Reports that FED could raise interest rates soon, which would push up cost of doing business
With these and other factors in mind, it is fair to say the bulls are not yet out of the woods; slump could continue all the way to 39k if the bulls fail to hold strong at 41k.
In the event we go down further, we have the following key price levels to watch:
- Next immediate support is @ 40k
- Second strong support zone is @ 39k
At present, I would recommend a formidable Stop Loss just below 40k.
Please compare notes; do your own analysis. This is not a financial advice.
Thank you.