Yesterday, Bitcoin plunged below 39 000 USD. However, the drop was quickly retraced and BTC bounced as high as 41 754.05 USD today. We continue to maintain a relatively neutral stance in the short term as we expect choppy price action to persist for a little longer. However, we are turning increasingly bearish in the medium term. Because of that, we would like to set a medium-term price target for BTCUSD to 37 500 USD.

Illustration 1.01

The illustration above shows the upward sloping channel indicated by two white dashed lines. Price can be seen rising throughout this channel, however, the decline in volume accompanies this price action. That signals caution to us.

Technical analysis – daily time frame
RSI started to turn bullish . MACD and Stochastic are striving to turn bullish as well. Indeed, MACD may perform a bullish crossover soon, which would bolster a bullish case for BTC in the short term. DM+ and DM- remain bearish , with ADX indicating the presence of a neutral trend. Overall, the daily time frame looks less bearish than in recent days. However, we will pay close attention to BTC’s ability to move above 50-day and 100-day SMA . Failure to move and hold above these levels would suggest more selling pressure ahead.

Technical analysis – weekly time frame
RSI is neutral, and the same applies to MACD . Although, MACD remains in the bearish area. Stochastic , DM+, and DM- are bearish too. Meanwhile, ADX indicates no significant trend is present. Overall, the weekly time frame is neutral.

Illustration 1.02

The picture above shows simple support and resistance levels.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.