Bitcoin slipped by almost 10% today near the $40,000 level but recovered briefly due to a sharp rejection. However, it remains bullish on a mid-term. But most altcoins are now painting red as they drop to a week low.
Earlier this month, Bitcoin broke out of its long ascending channel and extended bullish to a new multi-month high. That breakout alone saw the price shoot well to exactly $44,700 before facing rejection last week.
After failing to sustain momentum, it consolidated briefly and later closed that week’s price below the $44,000 level.
It opened short today and plummeted all the way from $43,789 to a low of $40,400 during the Asian session. The price recovered quickly to $42,100 but it is still looking weak on the daily chart. This breakdown may lead to a reversal if the sell-off continues.
Considering the latest drops on the first day of the week, BTC may see more bleeding in the upcoming days. From a technical perspective, the much-anticipated correction seems in play. The channel’s upper boundary could serve as support for a rebound if the price drops lower.
Despite the loss, the price still appears strong on the daily chart. The overall market structures show that Bitcoin’s bullish trajectory remains valid from a mid-term perspective.
Bitcoin’s Key Levels To Watch
As Bitcoin recovered slightly from the daily low, the sellers still showed interest in the price. If they retake the $41,000 level alongside the current daily $40,400 low, the next corrective level would be $39,000 and $38,500 – which broke out on December 1.
A recovery above the $42,827 level (that cracked today) could bring the price back to last week’s rejected high of $44,700, followed by a breakout to $45,000 before rallying next to $46,000.
Key Resistance Levels: $42,827, $44,700, $46,000
Key Support Levels: $41,000, $40,400, $39,000
- Spot Price: $42,138
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.