Bitcoin Market Overview

This time a bearish divergence gave true reversal signal. The price bounced from 20000.00 resistance level and moved lower. The market was overbought, and such correction movement now it's good for the market and investors. We get a new opportunity to buy on good levels and make much more profit than when the market makes new highs. And now we must have only one question - where the market will be stopped and reversed to the uptrend again? Let's look at the daily chart and spot possible support zones.

The 1st support zone is formed by 13000.00 support level from the hourly time frame and 0.5 Fib level. I don't think that this zone is strong, because it's between SMA20 and SMA50 which are also support lines. I don't like reversals between MAs and I think the price can break this zone and drop lower. But still, we should note this zone and if there is a confirmed reversal signal from it, we'll be ready to open long positions.

The 2nd support zone looks more solid. It's formed by SMA50, 10000.00 support level and 0.618 Fib level. If the price bounces from this zone, the reversal signal will be more reliable. We'll have a deep correction and a very interesting level for buying for long run. Also, RSI and MACD will be able to give good bullish signals. Now they are only moving to important zones for reversals. But what if the price also breaks the 2nd support zone? In such way we should be ready to see the price falling to 8000.00 and SMA100. This zone will be the key one for the market. It will be perfect for buying based on any reversal signals, and it will be important for confirmation the uptrend. If we see falling below SMA100, probably the bears will come to this market and stay here for sometime.

And what do you think about the current market conditions? Please, share your thoughts in commnets.