Bitcoin (BTC) price presents a buying opportunity as it drops to critical support levels. This decline appears to be a market maker maneuver to clear liquidity on the sell side before triggering an uptrend. As Kriptokoin.com, we convey the details and the expected levels for the Bitcoin price.
Bitcoin price may test the psychological level of $50,000
Bitcoin price has been in a downtrend since the day’s high of $42,988 on April 21. This decline is showing strength around the $40,100 to $40,500 support area and traders can expect a bounce here. The resulting rally could force BTC to retest Monday’s high at $41,152. If the bullish momentum is sufficient to produce a four-hour candle close above the weekly open at $42.137, there is a good chance that the uptrend will continue until Bitcoin price retests $44,591.
While the short-term outlook may seem bearish at first glance, the three-day chart shows that the recent decline remains firmly above the 200 three-day Simple Moving Average (SMA) at $39,946. . Investors can expect more accumulation in the last drop, which could lead to a quick recovery. After breaking the 50-day and 100-day SMAs, which act as the blockchain, market participants can expect the U-turn to make a run at $46,198 at the annual open. In a bullish case, BTC is likely to continue rising and retest the 200-day SMA at $47,997. If the bullish momentum continues, BTC could rise to retest the psychological $50,000 level.
If this happens, BTC will bottom out and invalidate the bullish thesis
From a shorter-term perspective, the 30-day MVRV rate intraday indicator is hovering around the local bottom at 8 percent. The last few times the rate has been this low, Bitcoin price has set a local bottom and triggered a spike. Also, the recent crash hurt investors and eased selling pressure. Therefore, if history repeats itself, BTC is likely to catalyze another move to $46,200 or higher, which coincides with the technically announced outlook.
Additionally, IntoTheBlock’s Global Money In/Out (GIOM) model shows that barriers up to $44,000 are weak. Therefore, a rapid increase in buying pressure could easily push BTC higher. Investors who bought around 3.4 million BTC at an average price of $47,454 are likely to create a huge upside. Interestingly, technically the upper bound for BTC is also capped at around $47,998, called the 200-day SMA. A break of the $40,100 to $40,500 support area could drag BTC down to $34,752. A daily candlestick near this key support will create a lower low and invalidate the bullish thesis.
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