Bitcoin Price has been moving crazily lately, touching an all-time high of $42,000 and dropping $11,000 in just two days. The Bitcoin price correction was compelled to arrive at some point. The important question is will this drop halt the impressive BTC rally? Let’s take a closer look at BTC Price.
Bitcoin Price Analysis: BTC Price and the Daily Chart
BTC/USD Daily chart – TradingView
The interesting thing here is that after a sudden drop two days ago the Bitcoin price has increased by almost +11.3% in the last 24 hours. At the time of writing this, the Bitcoin price is sitting at $38273.23. Now, on the daily price chart, the BTC price has touched $38273 which is way above where the 26-EMA was established. Additionally, although Bitcoin did drop below the 12-EMA as well at $35,000, bulls succeeded to buy the dip and close above both the 12-EMA and the 26-EMA in the next few hours.
Now, on the daily chart, all the EMAs are way below the current price and once again bulls seem to be in the authoritative position. The next possible resistance level could be at $41,986.37. Above that, the next notable price spot is $49000. Nevertheless, once again it looks that Bitcoin price is facing very little resistance to the upside and it could be on the path of the $50000 mark.
But again, according to the Ichimoku Cloud, when the price is below the cloud the trend is down. When the price is above the cloud the trend is up. At the moment, the cloud is way below the current price and it is moving slightly away from the direction of the current Bitcoin price and this could be telling us that the Bitcoin price will display fluctuations in the coming days but it still looks extremely promising.
Bitcoin Price Analysis: BTC Price and the 4 Hr Chart
BTC/USD 4 Hr chart – TradingView
Now, if we observe the BTC/USD price 4Hr chart then it looks somewhat assuring. The next possible resistance level could be at $39181. On this chart too, it looks that Bitcoin price is facing very little resistance to the upside and it is on the path of $41K mark. Now, it seems that odds support the bulls in the short and long-terms. Most technical indicators are still somewhat massively bullish on virtually all time-frames.
One thing to look at here is that according to Ichimoku Cloud, at the moment, the cloud is moving slightly down from the direction of the current Bitcoin price and this could be telling us that the Bitcoin price may display fluctuations in the next few hours.
Conclusion
Currently, the price of Bitcoin could create a right shoulder, indicating a bearish trend. Sitting at USD 38,250 at the time of writing, the price might reach back the USD 32,135 price area and break it downwards, and only then will the crash be confirmed. Now, buyers may help drive prices and keep them stable above the 30K psychological price area. Prices will shift between USD 31,300 and USD 40,000 giving traders major events to day trade and profit from a sideways trend. We wish you happy trading!