Bitcoin (BTC) has witnessed unrest in recent days after Elon Musk showed support for the cryptocurrency in the midst of GameStop’s mistake in the stock markets. However, following this tweet, the bitcoin price was adjusted after the payment was fully corrected by Elon Musk.
Since then, the price of Bitcoin has faced a critical hurdle in the $ 35,000- $ 35,200 region before testing its constant high. When this area breaks down and turns into support, it is likely to continue moving towards a new permanent position.
Bitcoin doesn’t have $ 35k and must return it for support
The 3-hour chart shows a clear structure of the downtrend with an external Elon Musk pump. This bearish structure formed after a peak of $ 42,000 earlier this year.
This downtrend has seen lower highs and lows that can be seen on the chart. Consequently, it is highly likely that this decline will continue.
If BTC breaks the $ 35,000 barrier, the $ 38,000 resistance zone shouldn’t be a major problem for the bulls. The next major range of potential resistance is around $ 40,500.
On the other hand, if the bitcoin price can’t get past $ 35,000, then a new test at $ 30,000 could be done. Given that the $ 30,000 level has gone through many trials since the previous all-time high, it is highly likely that this level will be lost. In this case, an additional adjustment of $ 25,000 to $ 26,000 is proposed.
The 21 week MA is currently worth $ 21,000.
Again, the only indicator requiring further correction is the 21-week moving average (MA). In the previous bullish cycle, it provided sustained support throughout the entire period.
However, if the market continues to correct, it is still unlikely to be able to test the previous record in 2017. In other words, everyone and their mothers will buy there, so the market is unlikely to provide that opportunity.
Thus, the possibility of a new correction from $ 24,000 to $ 26,000 still exists, and it should also overcome the CME gap along with the test of the 21-week moving average.
However, such a correction will depend on whether the bitcoin price can break the $ 35,000 mark.
Bullish scenario for bitcoin
This detailed diagram and scenario shows that the critical area is a $ 35,000 area that, if destroyed, would open the door to new full-time jobs.
In the short term, there may be some consolidation around $ 38,000. But since BTC has already tested this once, it will likely meet resistance at the $ 40,500 level. Hence, if the bitcoin price moves outside the $ 35,000 area, it is expected to continue to rise to $ 40,500.
Bearish scenario for Bitcoin
The disadvantage scenario is also clear: $ 35,000 remains withheld as resistance to further disadvantages.
Initial Support is a $ 32,000 site that has been tested many times and is likely to fail as support. The following site found between $ 29,000 and $ 30,000, which was also checked several times for support.
Retesting and falling above that level will open the door to $ 25,000. This is in line with the CME gap and 21-week moving average. Meanwhile, each previous support level was confirmed as resistance and the correction continued to set lower and lower levels.