Bitcoin price stabilizes above value support line

The price of Bitcoin is firmly above the support line near $275 and has found strong buying support as bears attempt to sell the price lower, thus frustrating the plans of bears. The analysis points out the state of market psychology at the current juncture and the potential consequences.

Bitcoin Price Analysis

Bitstamp 1-hour chart

On the Bitstamp chart, the daily 20-period moving average is currently at $274.80, and the price is just a few pips below $276 (Bitstamp), with strong buying support at this level.

Right now it looks like support is holding. If it refuses to give, the market price cannot fall below, then the only option for traders in the market will be to buy. The market may have already done so... So there is competition between the bullish and bearish camps.

Just six months ago, the bears lost the voice in chart trends that they had controlled for more than a year.

There are many possible legitimate motivations for bears to push prices down: habit (if they continue to do so in the future); the desire to buy at a lower price; resentment, perhaps not picking up the beans 3 years ago and missing out on the best opportunity to invest in Bitcoin. When the price returned to below $300, the bears gained strength and we saw them active in the market, but they no longer have the energy they had before.

The moving average tells us a complete story: after months of consolidation of the moving average, the price of Bitcoin on the daily chart has risen above the buying point of the moving average. According to the last analysis of [xbt.social member] last Friday, the market has found support on the 20-period moving average of the daily chart (for now), and now we can expect a price range to form between $280 and $320 to appear in front of us. Once our xbt.social buy signal starts flashing, we can expect the upward trend to start. Its target will be a long-term analysis discussion topic later this week [xbt.social].

Of course, the alternative certainly exists: if the price falls below the daily 20-period moving average at $274.80 (Bitstamp), then a big drop will begin. But this is not a depressing news, but an opportunity, which we will use to sell at $250 and $230 and buy long positions. Such an event will strengthen the consolidation of the moving average and brew a stronger rebound thereafter.

It is worth noting that the 20-period moving average on the daily chart at $274.80 is a potential breakthrough point that requires special attention.

Formal education allows you to earn money to support yourself, but self-study brings you great wealth. --Jim Rohn

Summarize

Bitcoin price is above the support line and may fluctuate between $280 and $320. The market may continue to fall, but Bitcoin traders and investors will not lose much in the process. The only potential loss is if traders buy from the current level before we can rule out the risk of a fall. So, be patient. If the upward trend is confirmed, there will be huge profit space, so don't worry too much about missing out on it, and at the same time, protect the funds you have.

Bitfinex Depth Chart and Buy/Sell Volume Indicator: