Yesterday I discussed how Bitcoin is likely to have a failed bounce and dip lower. That scenario has played out, Bitcoin briefly rebounded but is continuing to trend down lower to the bottom of the yellow channel. I have $62.2k as a key support level here, I think Bitcoin could form a rebound over the next few days. For now I would monitor $62.2k to see if the support level holds.
Bitcoin Drops to Key Support Zone
Over the past 6+ months Bitcoin has been building a monthly support zone between $58.5k and $60.3k. Today the markets experienced a selloff caused by Iran’s attack on Israel. We have seen this narrative play out exactly one year ago when Hamas attacked Israel on October 7, 2023. Bitcoin recovered and performed extremely well over the next few months. I think we might see a similar scenario here with Bitcoin likely to recover and start rallying. I have several different support levels in mind, but $58.5k – $60.3k is the first line of defense here. So far Bitcoin has wicked back up from $60.3k. I have a $55k price target in mind for the October lows, but I’m concerned that investors are front running the market since there was so much bullish price action in September.
Failed Retest for the Altcoin Market
The Altcoin market was attempting a bullish retest of the yellow resistance level around $617 billion market cap. However, this was a failed retest with the Altcoin market dropping below support. The Altcoin market needs to climb back above $617 billion as soon as possible to avoid a false breakout. I think this failed retest is common, I’m not too concerned here but would like to see some bullish volume over the next few hours and days.
The crypto market is selling off from the Iran-Israel news. For anyone shorting, the markets are starting to form a bullish rebound.
Bitcoin has formed a rejection exactly at previous cycle all time highs from Nov. 2021. This is common and I think Bitcoin could form a bullish breakout on the next strong move to the upside. For now I would wait for the price to bottom out and form a rebound. There is risk of more downside.
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