$BTC $BTC Technical analysis of Bitcoin on the (weekly) frame:
We previously explained that technical analysis based on long-term frames helps us understand market movements better as a comprehensive view of market movements, as well as building a long-term trading strategy.
1. The gray area - Critical resistance:
Bitcoin faced strong resistance at the gray area starting from around $92,000 to $94,983. The price was unable to close above this area last week, indicating that there is strong selling pressure in this area. If the price fails to break through this area and hold above it, we may see a downward correction in the coming period.
Possible scenario:
If the price continues to be rejected at this area and does not close above it by the end of the week, it is likely that the price will start to retreat. The first target of this retreat will be to test the blue ascending trend line.
2. The blue ascending trend line - Strong support in case of correction:
This line represents the ascending trend that began in mid-March. If the correction we expect occurs, the price is likely to return to test this line in the area ranging from $87,000 to $88,000. This line represents strong support, and if the price fails to hold above it, the market could enter a deeper bearish phase.
Possible scenario:
If the price drops to this level ($87,000–$88,000), we may see a bullish rebound if this support is activated. This would be a good buying opportunity if signals from the market support this bullish trend.
3. The yellow area - The last line of defense:
The yellow area represents a critical support area for Bitcoin. This area extends from $81,852 to $85,725. This area is the 'last line of defense' that separates the continuation of the bullish trend or a market collapse. If the price fails to hold above this area and a weekly close occurs below it, this may indicate the beginning of a deterioration in the situation and the possibility of a larger price collapse.
Possible scenario:
If a weekly close occurs below this area, we will witness a greater decline and the market may head toward deeper levels reaching $73,000 or less. However, if the price continues to rebound at this area or if it is tested again and rebounds upward, this will maintain positivity in the market.
Summary:
Based on the previous technical analysis, we note that the price is currently in a sensitive position. If it fails to break and close above the gray area (resistance), we may witness a gradual retreat toward the support level at the blue ascending trend line. If this yellow area is broken, we will have a signal for a larger price retreat.
Market positivity:
The market will remain positive as long as Bitcoin stays above the yellow area, without closing below this area by the end of the week. This will give the market the opportunity to continue the upward correction after testing the mentioned support levels.
