Bitcoin Price Levels To Watch Following The Strong Sell Off
Source: Pixabay

Following a strong sell-off last week, Bitcoin price has now fallen ~ 40% from its peak. Before the news coming out of China, Visionary Financial was focusing on key support levels last week and outlined a scenario where Bitcoin could experience a strong sell-off. With prices now hovering around $37,500, what key levels will traders and investors be watching to assess short-term sentiment? 

Bitcoin Price

At the time of this report, Bitcoin is currently trading at $37,632. The largest cryptocurrency by market cap tanked ~ 8.5% on Friday after news broke on China continuing to crack down on Bitcoin mining. Sentiment going into Friday was already weak, given the fact the U.S Treasury Department stated on Thursday that they would be cracking down on transaction reporting ( crypto transfers of more than $10,000 ). This would be facilitated to deflect tax evasion and other criminal activities the government thinks crypto assets are involved in. As of Friday, Bitcoin’s recent sell-offs positioned it ~ 40% from its peak. 

Aside from the core fundamentals, Visionary Financial had outlined the bearish case for Bitcoin on 5/16. At the time of the report, Bitcoin was trading at $46,978. Based on the technicals at the time, there was strong evidence pointing to a sharp drawdown. It was noted that Bitcoin price could fall to ~ $38,500 levels If key support was rejected. This came to fruition and more…

Bitcoin Technical Analysis Moving Forward

Following the crazy price action last week, investors and traders are still trying to assess the shorter-term sentiment. Based on the updated chart below, Bitcoins ROC ( rate of change ) indicator hit the lowest level in over a year. As mentioned before, ROC is a great indicator used to assess momentum/sentiment. We finally started to see ROC change direction, which could be a bullish indicator. It is important to note that this in itself can not be used to solely assess sentiment. We continue to focus on key support and resistance levels.

Bitcoin Technical Analysis

As of now, $39,000 appears to be a relatively strong resistance level. If Bitcoin price can hover back above $39,000, the digital asset could start to experience an influx of risk capital. At this point, bulls could start to push it higher. Given the uncertainty in the market right now, we continue to have a bearish outlook until $39,000 resistance is slashed. Right now Bitcoin is eyeing $32,700 support unless resistance is conquered. If we do see BTC back above $39,000, bulls could be in a position to push it to $44,800 resistance.

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.

This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal, and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like
Unraveling the Future: Understand Why Is Quantum Computing Useful for Optimization Problems

Why Is Quantum Computing Useful for Optimization Problems – Unraveling the Future

Do you ever find yourself struggling with complex optimization problems? If so,…
NFTs on Bitcoin: An In-Depth Analysis of Ordinals' Launch

NFTs on Bitcoin: An In-Depth Analysis of Ordinals Launch

The world of cryptocurrency and digital assets is constantly evolving and expanding,…
Cryptocurrency SEO

Cryptocurrency SEO: Boost Your Online Treasure

Are you looking to enhance your online presence in the world of…
ethereum 2.0

Will Ethereum 2.0 Lower Rising Network Fees?

Concerns of rising transaction fees have once again rattled the Ethereum community.…
crypto analysis

Crypto Analysis: Applying Portfolio Diversification To Cryptocurrency Assets

Most market participants are familiar with the concept of diversification, and how…

Week Roundup For BTC, ETH, XRP Price Analysis, List Of Top 10 Cryptocurrencies And Catalysts

Global cryptocurrency markets are coming off a hot week, as a majority…

Deutsche Bank Outlines Crypto Replacing Fiat by 2030 Due To Weak Existing Fiat System

Deutsche Bank, the German-based banking giant, recently issued a report dubbed “Imagine…
Crypto Price Weekly Analysis 12/23: BTC, ETH, BNB, ADA

Crypto Price Weekly Analysis 7/29: BTC, ETH, BNB, ADA, DOGE

As we approach the end of the Friday session, pretty much all…

Bloomberg Has Bitcoin Price At $20,000 End Of Year, What Needs To Happen?

Bloomberg recently covered Bitcoin price outlook and argued price predictions based on…
Maximizing the Potential of NFT PR for Your Business

Maximizing the Potential of NFT PR for Your Business

At present, NFT (non-fungible tokens) is the talk of the town in…