Although the price of Bitcoin (BTC) rose to $ 40,000 after US President Biden announced his decision to borrow, it fell to $ 35,000 as we entered the weekend. Traders usually intensify their purchases during the weekend dips, but there seems to be no clear move yet.
On the other hand, it is observed that institutional investors do not give up on cryptocurrencies and act to protect their investments. However, it is a matter of curiosity that there is not enough institutional investment in BTC, which fell below $ 40,000.
Although some analysts have announced that in the worst-case scenario for the Bitcoin price, a drop of up to $ 20,000 can be seen, there are signals that an upward movement may also be experienced in technical analysis.
BTC / USDT – Bitcoin teknik analytics
The short-term relief rally after the great pullback in Bitcoin price failed to reach the level of $ 41,269, which was calculated at the 38.2% Fibonacci retracement level. The downside 20-day exponential moving average (EMA) ($ 42,125) and the relative strength index (RSI) in the negative zone show that the bears are currently controlling the market.
Daily chart of BTC/USDT pair. Source: TradingView
If the BTC/USDT pair breaks below $34,000, this decline could extend to the critical support of $30,000. The bulls are likely to defend this support aggressively.
If the bulls step in and start the upward movement, their first goal will be to push the price to the neckline of the shoulder-head-and-shoulders model. If they are successful, the pair could rise to $48,231 calculated at the 61.8% Fibonacci retracement level. Such a move will reveal that the pair has bottomed out at $ 30,000 and headed higher.
Conversely, if the bears sink the price below $30,000, the sell-off may intensify as stop orders from traders who bought from the previous bottom will work. There is a minor support at $28,000, but if that also breaks, then $20,000 could be the next stop.
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