Bitcoin (BTC) – Plunged 23% in the past week

Bitcoin (BTC) – Plunged 23% in the past week

Posted on Sunday, December 5 2021 at 9:17 pm GMT+0000

Bitcoin (BTC) has plunged 12% overnight on Saturday and 23% in total last week before it landed on the 55-week exponential moving average, just below the 61.8% Fibonacci level of the 28900-69000 bullish wave. Since then, it has recovered over half of the losses and is currently testing the 50000 level.

Despite the remarkable bounce after the drop, momentum oscillators are warning that buying powers may be fading somehow. The MACD has just crossed its signal line for the first time since August and the RSI is sharply pointing south having crossed its equilibrium level of 50.

Overall, the bullish structure remains undamaged and if buying powers re-intensify, preliminary resistance could transpire from the 20-period exponential moving average coinciding with the 38.2% Fibonacci level at 53000. Surpassing that, the 59500 zone represented by the 22nd of November swing high in addition to the 23.6% Fibonacci level could be the last resistance before re-testing the all-time high at 69000.

If a deeper correction materializes, the bullish trendline drawn along the previous bottoms could offer the earliest support around 40000 which matches the September low. If this zone fails to obstruct the descent, Bitcoin (BTC) could see another plunge towards June’s bottom at 28800. Note that this level marks the last line of defense safeguarding the bullish structure.