Bitcoin dropped almost 80% of its upward path from the $69,000 ceiling and reached $15,500, and fluctuated below $20,000 for a few weeks, but with the support, it reached above the 20,000 channel and completely stabilized in these three weeks. Despite the banking crisis in the United States and the dollar weakness and the support of Bitcoin as a competitor of banks, it was able to climb well and reach above $25,000 and even reach the $30,000 channel.
Further, we will check Bitcoin's technical, fundamental, and sentiment aspects.
If we pay attention to the weekly time frame of Bitcoin, the range of 30 to 32 thousand dollars is an important area. In arrows 1, 2, and 3, it is clear how this area has performed its supporting role well, and in arrow number 4, after the failure of this area, Bitcoin has strengthened its bearish power again and has fallen to $17,000, which is 78% of the Fibonacci rising wave. As a result, this range of $30,000 to $32,000 plays a decisive role in Bitcoin's movements.
Bitcoin seems to have a difficult task ahead to climb and pass through this area, and it does not have enough energy to continue its upward path. For a long-term rise of Bitcoin, it is necessary to close the weekly candlestick above $33,000 and then $36,000 and stabilize above these important resistance areas. In the weekly time frame, Bitcoin seems to have approached an important resistance range, and the possibility of retracement is very high.
In the daily time frame, an ascending channel can be imagined for Bitcoin, and this channel has been broken upwards, but on the other hand, Bitcoin is involved in a strong resistance in the higher time frame, i.e., weekly. As you can see in the picture, Bitcoin has not been able to rise further, and it has formed many bullish and bearish candlesticks in this area, and these are signs of market uncertainty for further growth. If Bitcoin enters its ascending channel again, we can expect it to correct to the middle of the channel and the specified support area, i.e., 25 to 24 thousand dollars, and to decrease, it should stabilize below this range, in this case, it can also decline to the bottom of the channel. On the other hand, until Bitcoin doesn't re-enter the channel from the bottom and price support takes place, it can climb up to 31 and 32 thousand dollars.
In the four-hour time frame, we can see that Bitcoin has formed a divergence, meaning, it has created a higher price in the chart, but a new peak has not formed in the Rsi indicator. Even Bitcoin can create a new ceiling, but the divergence is maintained, and this divergence is a warning of instability. It refers to the rising price instability, and the possibility of a decline is high.
The price can reach the support of 26,500 after breaking its diagonal line, and if it loses this support, it can reach its daily support of 24,500.
The fundamental analysis of bitcoin depends more on the dollar's general situation. Of course, sometimes the news published about cryptocurrencies causes the rise and fall of bitcoin. In general, in these few weeks, the dollar was in a weak position due to the banks' bankruptcy and the possibility of stopping the increase in interest rates, so it was in a weak position and caused Bitcoin to rise. In case the banking crisis escalates again and is not controlled, this issue can benefit Bitcoin because cryptocurrencies are considered weaker than traditional banks. On the other hand, if this crisis is controlled and causes the strength of the US dollar, it can also lead to a decrease in the price of Bitcoin.
According to the technical analysis, it seems that in this resistance range, one was looking for a sell position, and with their trading strategy, if they give you a sell confirmation, you should enter into a sell trade with a suitable loss limit. If you are thinking of buying, it seems that you should wait for Bitcoin to make a price correction, enter the transaction with a suitable stop loss, or allow it to cross the resistance range of $32,000, and then enter the buy transaction with more confidence in pullbacks.