Indeed, that situation developed rapidly! The bitcoin price experienced a significant decline, moving through the $70,000s and $60,000s last week, but ultimately stabilized at $60,000. The bulls made a strong comeback from a lower position, driving the price up to $71,700 before experiencing a slight retreat, ultimately closing the week at $70,315. Last week, the bears made significant progress to the downside, prompting the bulls to attempt a recovery this week. Anticipate that the $60,000 support level will remain intact at least throughout this week. Given the significant decline observed last Thursday, it is essential to identify new resistance levels to monitor in the future. In the near term, $71,800 is a key level to monitor following the price rejection observed from Friday into Saturday. The 0.382 Fibonacci retracement from the most recent downward movement is positioned at $74,500. If the price can successfully rise above this level, $79,000 is likely to serve as a significant resistance point. $84,000 remains a significant threshold and is expected to act as robust resistance in the future.
The bulls aim to maintain $65,650 as a critical level to initiate a potential reversal in this scenario. $63,000 serves as a key support level just beneath current prices. Next, we have 60,000 as newfound support just above the 0.618 Fibonacci retracement at 57,800. It can be argued that the genuine support level is positioned at $57,800, which was marginally anticipated at the $60,000 low. If this level is breached, we will examine the potential for support at $44,000, followed by $39,000 at the 0.786 Fibonacci retracement below this point.
The MRI Indicator provided a buy signal last Friday on the daily chart, originating from the $60,000 low. The upward movement from that level was significant, indicating that the bulls must aim to leverage this bounce to sustain the momentum as we progress through the week. This signal has the potential to generate a complete reversal; however, it frequently leads to merely a 1 to 4 candle correction of the prevailing trend. If the bulls maintain their momentum leading into Wednesday, we could be witnessing a potential sustainable reversal on the daily chart, which may aim to reclaim the $80,000 level.
The bears pushed the price down significantly last week. The weekly RSI reached oversold territory and generated a significant rebound. Following a notable decline and a substantial recovery from $60,000, it is expected that the price will stay within a defined range for at least the upcoming weeks. Anticipate that there will be no significant price movement exceeding $80,000 or dropping below $60,000 in the upcoming weeks.