Is This A Good Opportunity to Buy Bitcoin (BTC) Near the Bottom of the Range?
Bitcoin is heading for the lows near $30,000, which has been acting as support for a month
Bitcoin has turned bearish again in the last few days. It gave the impression that it had finally resumed the larger bearish trend after it broke the declining lows early last week, pushing above $41,000, and Elon Musk commented again on Bitcoin, saying this time that Tesla would accept it again, which gave the BTC a push higher.
But the climb ended there, with the 200 SMA (purple) providing resistance on the daily chart. The price reversed back down after a doji candlestick up there, which is a bearish reversing signal. Since then, the decline hasn’t stopped, which is yet another bearish sign for cryptocurrencies.
Bitcoin has slid to the bottom of the range once again
On the H4 chart above, we see that at the end of last week, the price moved above moving averages, which were acting as resistance before that. But, buyers couldn’t hold onto the gains above $40,000, and Bitcoin has reversed back down now, after losing its bullish momentum, as we explained in our 2021 Bitcoin forecast.
Although, the price is near the bottom of the range for Bitcoin, which has been respecting it for more than a month. This might be a good place to buy Bitcoin, since the BTC/USD price is near the bottom of the range, and we might see a bounce higher towards $40,000 from here.
But, the selling pressure has been strong in the last few days, with China intensifying the crypto crackdown. So we will be on hold for the moment, as we watch the price action, and perhaps go long if we see some bullish reversing signals.
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