The cryptocurrency market is under pressure this week after US officials announced they have recovered nearly all of the bitcoin ransom paid to the perpetrators of a pipeline cyberattack. Since then, The Bitcoin Law has just been approved in the congress of El Salvador and Bitcoin becomes a legal tender. However, this latest news did not help bitcoin to recover.
Weekly interval :
The bearish signal was given when the RSI formed a bearish divergence, and confirmed after it breaks below the Overbought line, which led to a deeper correction. Prices broke under the Kijun-line and failed to recover, after several bad news, especially from China. From Ichimoku's perspective, the next support can be found above the cloud, around $27 000. The resistance area is between $38600 and $40000.
BITCOIN, W1 interval, Source : xStation5
Daily interval :
On a daily time frame, prices remain on support at $34080 after several tests of the key support around $30000. If bears take back control of the market and break the aforementioned key support, the decline could deepen to $19000. On the other hand, if bulls manage to take prices higher, the next resistance can be found on the Kijun-line (blue line) at $44500.
BITCOIN, D1 interval, Source : xStation5
H4 interval :
This short interval gives us a complete picture of the actual technical situation on Bitcoin. After breaking the lower limit of the triangle, prices tried to recover but failed to rise above the Kijun-line (blue line). If prices manage to rise above the aforementioned Kijun-line, the upward move will be able to resume to the ichimoku cloud coinciding with the lower limit of the triangle. However, if prices break below the $30900, the next support will be at $29000, a previous local low.
BITCOIN, H4 interval, Source : xStation5
Réda Aboutika, XTB France