Bitcoin bounces off 20K support
Bitcoin has risen back above 20K after the weekend plunge below this key level.
At around 20K, bitcoin is now severely oversold following a relentless sell-off. There’s the possibility we will see at least a short-term recovery, although so far, we haven’t seen any clear bottom pattern yet.
Incidentally, the area just below 20K also marks the high from 2017, as you can see from the weekly chart. Once a major resistance, this area could turn into a new long-term support. Furthermore, the 78.6% retracement of the entire 2020-2021 rally comes in at $117,800. Both of these levels have now been tested.
Meanwhile, major dips of 70 to 85 percent have historically resulted into major bottoms. Will history repeat itself?
If Bitcoin bottoms out here, the next upside target from here would be the next level of resistance at around $25,400. But first thing is first: we need to see a confirmed bullish reversal stick. Sunday’s big rebound is a tentative bullish sign, but we now need to see a desire for price to stay above 20K.
At around 20K, bitcoin is now severely oversold following a relentless sell-off. There’s the possibility we will see at least a short-term recovery, although so far, we haven’t seen any clear bottom pattern yet.
Incidentally, the area just below 20K also marks the high from 2017, as you can see from the weekly chart. Once a major resistance, this area could turn into a new long-term support. Furthermore, the 78.6% retracement of the entire 2020-2021 rally comes in at $117,800. Both of these levels have now been tested.
Meanwhile, major dips of 70 to 85 percent have historically resulted into major bottoms. Will history repeat itself?
If Bitcoin bottoms out here, the next upside target from here would be the next level of resistance at around $25,400. But first thing is first: we need to see a confirmed bullish reversal stick. Sunday’s big rebound is a tentative bullish sign, but we now need to see a desire for price to stay above 20K.
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