Bitcoin Remains Under Pressure
Bitcoin managed to get below the support level at $32,000 and is slowly moving towards the psychologically important support at $30,000 while most other cryptocurrencies remain under pressure.
Crypto markets lack upside catalysts at this point. Without positive catalysts, crypto markets continue to drift lower, which puts pressure on traders who established their positions at higher levels and triggers new waves of selling.
It should be noted that the current decline is very measured, and there is no true sell-off. However, the true amount of leverage at crypto markets is not known, and the situation may change quickly in case Bitcoin manages to settle below the key support level at $30,000.
Bitcoin is currently trying to get to the test of the major support level at $30,000. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If Bitcoin declines below the support at $30,000, it will move towards the next support level at June lows at $28,800. A move below June lows will likely trigger an additional wave of selling. In this case, Bitcoin could quickly get to the test of the next support level which is located at $27,700. A move below this level will open the way to the test of the support at $25,800.
On the upside, the previous support level at $32,000 will serve as the first resistance level for Bitcoin. In case Bitcoin manages to settle back above this level, it will head towards the 20 EMA which is located at $33,600. A move above the 20 EMA will open the way to the test of the resistance at $35,000.
From a big picture point of view, Bitcoin remains in a downside trend, and the current technical setup looks rather dangerous for Bitcoin bulls. That said, Bitcoin’s near term dynamics will depend on the test of the key $30,000 level. If Bitcoin manages to stay above this level, it will have a decent chance to rebound.
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