Short-term Support Levels for Bitcoin

 



The price of Bitcoin has beeen falling lately, with yesterday's price falling by a little more than 5%. 
The following chart shows three of the closest support levels that may support the price of the coin if it keeps falling. 


Support Levels

1) The blue area represents the price between a 28.3 to 28.8k area: a multi-weekly rising trendline and a 38% Fibonacci level converge at around that point, so the price might encounter some bullish resistance at around that area. 

2) 200 SMMA: Long-term averages always act like strong support or resistances although this time it will act a strong support at around the 25.8k level if the first support level is broken. 

3) The read area represents the price between 24.6 and 25k area: This is the last area of support before the price of Bitcoin turns for the start of a continuation of a bear period, which is yet unclear where it could bring the price of Bitcoin. 

Although it is difficult to see the value of your portfolio taking such tumbles of 5% daily price decreases, I do not believe the price of Bitcoin will pierce the 200 SMMA to the downside. What is possible, is seeing Bitcoin consolidate at a level close to the SMMA for some time, but increasing again in the medium-term. 

For example, the Bitcoin Fear Greed Index (a contrarian indicator) has taken a large tumble in a matter of 24 hours down from greed to neutrality, meaning that we might see a lot of buying pressure i the price of Bitcoin keeps decreasing. 










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