#Bitcoin ($BTC) started August with a decline after an uptrend that continued for 10 days without correction.
After closing the last day of July with negative, Bitcoin (BTC) has not yet seen a positive day close in August. Let's try to identify the critical levels in the short term by examining the last 15-day course of Bitcoin.
3-hour chart of BTC/USDT
#BTC/USDT, which entered a remarkable rise after drooping below $30,000 on July 21, saw its last short-term peak at $42,600. We saw an average of 40 percent increase in value during this period. The selling wave, which started at $ 42,600, continues for 4 days. Today, BTC started the day with a seller.
Corrections seen in uptrends help the trend to progress up to a point. If we look at the trend we are in with the help of Fibonacci retracement levels; We can see that selling broke the initial support Fib 0.236 at $39,300.
Since yesterday, the value of Fib 0.382, which has been working as a support of approximately $ 37,500, has come to the fore. If this level is broken by 3-hour candle closes, prices of 36,000 (fib 0.50) and 34,500 (fib 0.618) may enter the radar, according to the current uptrend. Especially below $37,500, 34,500 can be followed as the most important support level.
EMA values of 8.21 and 89 candles, which we follow regularly, also reflect the bearish pressure. The fast EMA values (8 and 21 EMA), which were above the slow EMA (89 EMA) at the beginning of the uptrend, are about to make a reverse move today. This outlook may encourage selling and we may see a move to the support points we mentioned above.
The stochastic RSI, one of the important technical indicators, is looking for an exit in the oversold region, but so far this indicator has not found enough volume to give a buy signal. Besides, the CMF indicator is also in the negative territory. This allows us to confirm that capital outflows are higher.
For us to see a reversal, the BTC/USDT pair needs to maintain the $37,500 support today. Next, the $38,200-$800 band is the closest resistance zone. A day close above this zone at $39,300 might break the bearish setup so we could see the correction remain limited. In this case, while the first target will be the last peak of 42,600, Bitcoin can settle in the band of 43,000 - 45,000 dollars in the short term if this breakdown occurs.
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Disclaimer: The information in the content is not an investment advice. Author is not responsible for your profit or loss. Every investment involves risks and requires knowledge.