If you missed our previous Bitcoin analysis Week In Review: End Of Ranging Market! BTC, ETH, ADA Breaking out you might not have seen this Bitcoin dump coming. But in that analysis, we talked about the $36,213 key resistance and how a price failure around this region could save us from buying a bullish price fakeout.
Well, the Bitcoin price dumped massively after getting to that $36,213 region, pointing to very high bearish pressure building up in the Bitcoin market.
In this Bitcoin analysis, we will be talking about what we believe might happen next to this coming move either to the upside or downside in the coming days.
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Does This Mean A Sell?
This dump is not a trigger for a Bitcoin price sell-off yet. The key support to watch is the $32,841 level. A break below this $32,841 key support confirms our bearish bias on Bitcoin and points to more sell-off in the Bitcoin price in the coming days.
However, that is yet to happen, right now Bitcoin is trading sideways between two key levels on the 4-hour timeframe
As far as Bitcoin continues to trade within this range, we will remain neutral on the cryptocurrency. However, a break of either the resistance or the support levels we talked about above could signify the end of this sideways movement in Bitcoin.
Bitcoin Analysis: Final Verdict!
Bitcoin is still bearish on the Daily timeframe. However, the lower timeframes including the 4-hour timeframe are now beginning to show signs of bullish strength coming into the market.
The best way to know once this buying pressure comes into the market is a break of the $36,213 key resistance level. Until this resistance is broken, we will remain bearish on Bitcoin.
A break of the $32,841 support on the 4-hour timeframe on the other hand confirms the start of the bearish dump for Bitcoin.
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