Bitcoin is currently trading at $94994 and remains above the $90500 mark. However, the cryptocurrency has lost a high-timeframe trend line, suggesting a potential rebound to retest the underside of this trend line before price tests nearby supports.
Bitcoin Support and Resistance Levels
Understanding the key support and resistance levels is crucial for navigating Bitcoin's price movements. Here's a breakdown of the current levels:
| Level | Price (USD) | Description |
|---|---|---|
| Support 1 | $90500 | The 100-day Exponential Moving Average (100 EMA) represents the average price over the last 100 days and indicates market trends over a mid to long term. |
| Support 2 | $88000 | The lower Bollinger Band is a measure of volatility, representing the lower deviation from the 20-day simple moving average. |
| Resistance 1 | $96500 | The 50-day Exponential Moving Average (50 EMA) represents the average price over the last 50 days and indicates market trends over a short to mid-term. |
| Resistance 2 | $99000 | The upper Bollinger Band is the upper deviation from the 20-day simple moving average, also indicating volatility. |
Frequently Asked Questions About Bitcoin Price Action
What Bitcoin price targets should I consider?
Key levels to watch include support at $90500 and resistance near $96500. A potential target to consider is $136372.
Is Bitcoin currently bullish?
The current market bias appears bearish. The Stochastic RSI is at 35/40. Resistance is noted at $96500, and a stop-loss below $88000 is recommended.
How do I set stop-loss levels for Bitcoin?
It is advised to place stop-loss orders below the $88000 support level. Traders may also consider using swing lows as a reference for setting stop-loss levels.
What are the Bitcoin moving averages indicating?
The 50 EMA is at $96500, and the 100 EMA is at $90500. With Bitcoin trading at $94994, these indicators suggest mixed signals.
Should I buy or sell BTC?
For buyers, entering near the $90500 or $88000 support levels with stops below $88000 is a strategy. Sellers might consider exiting near $96500 or $99000, with potential profit-taking at $136372. Risk management is essential.
How do Fibonacci levels affect Bitcoin price?
The Fibonacci 61.8% retracement level is at $106010, and the Fibonacci 138.2% extension level targets $136372.
What does the $BTC momentum show?
The Stochastic RSI K-line is reading 35. Readings above 80 indicate an overbought market, while readings below 20 suggest an oversold market. Readings between 20 and 80 are considered neutral. The current reading indicates bearish momentum.
Conclusion
Bitcoin is showing signs of weakness below the $90500 level, with attention turning to the $88000 support for a potential breakdown. The current momentum indicators favor bears, suggesting a possible sell-off. Traders are advised to remain cautious and prioritize capital protection.