Bitcoin Rebounds From $60K Capitulation Low, Eyes $74,500 Resistance This Week
Bitcoin Price Weekly Outlook
However, that quickly grew! The price of bitcoin recently melted all the way between $ 70,000 and $ 60,000 last week, but finally found its footing at $ 60,000. The bulls fought back from there to bring the price back to $71,700 before pulling back slightly to close the week at $70,315. The bears covered a lot of ground last week, so the bulls will try to bounce back this week. Expect the $60,000 support to hold at least this week.
Key Support and Resistance Levels Now
With such a big drop last Thursday, we will need to find new resistance levels to watch moving forward. In the short term, $71,800 is the level to watch after the price was rejected there on Friday into Saturday. Above here, we have the 0.382 Fibonacci retracement from the recent low, which sits at $74,500. If the price cannot rise above this level, $79,000 should be a strong resistance. $84,000 remains firm above this level and should hold strong resistance going forward.
If you look below, the bulls will look to hold $65,650 to try to make a change here. $63,000 sits just below as support. Next, we have $60,000 as new support just above the 0.618 Fibonacci retracement at $57,800. Arguably, the real support sits at $57,800 here and has been slightly ahead of that $60,000 low. If this level is lost, we will look up to $44,000 for support, then $39,000 at the 0.786 Fibonacci retracement below here.
This week’s Outlook
The MRI Indicator gave us a buy signal on Friday last week on the daily chart from the $60,000 low. The move was strong from that level, so the bulls will have to try to use this building to continue the rally this week. This signal can produce a full reversal, but usually only results in a 1 to 4 candle correction of the trend. So if the bulls can keep the push up until Wednesday, we may be looking at a sustained reversal on the daily chart, which may try to retake the $80,000 level.
Market situation: Bearish – The price lost a lot in the last week. The bears are in control. Time.
Over the next few weeks
Bears took the price down another big leg last week. The weekly RSI reached oversold levels and produced a major bounce. After such a drop and such a big pullback from $60,000, the price should remain tied within this range for at least the next few weeks. Don’t expect to see any price action above $80,000 or below $60,000 in the next few weeks.
Vocabulary Guide:
Bulls/Bulls: Buyers or investors do not expect the price to rise.
Bears/Bears: Sellers or investors are not expecting the price to go down.
Support or support level: The level at which the price should hold for the asset, at least initially. The more support is touched, the weaker it is and the more likely it is to fail to hold the price.
Resistance or resistance level: As opposed to support. The rate is likely to decline the price, at least initially. The more resistance is touched, the weaker it is and the more likely it is to fail to hold the price.
Oscillators: Technical indicators vary over time, but usually stay within a band between established levels. Therefore, they fluctuate between a low level (usually representing oversold conditions) and a high level (usually representing overbought conditions). EG, Relative Strength Index (RSI) and Moving Average Convergence-Divergence (MACD).
RSI Oscillator: The Relative Strength Index is a dynamic oscillator that moves between 0 and 100. It measures price speed and changes in the speed of price movement. If the RSI is above 70, it is considered overbought. If the RSI is below 30, it is considered oversold.
Fibonacci Retracements and Extensions: Measurements based on what is known as the golden ratio, an international standard relating to the growth and decay cycles of nature. The golden ratio is based on the constants Phi (1.618) and phi (0.618).
Momentum Reversal Index (MRI): Proprietary reference created by Tone Vays. The MRI indicator tracks the buyer’s and seller’s pressure and fatigue, providing signals to indicate when to expect fatigue and acceleration.
