Support? Check. Will BTC bounce toward higher ground?
last weekend that"Bitcoin is rangebound on a macro level," but its long-term structure suggests that it would break to the upside.
"In the immediate term, if the 50 DMA and 3-day level can prove to be supported, a retest of the $43K and high timeframe level could occur," said Flibflib, adding that a further break above Bitcoin's yearly pivot level of $48,000 would be"very significant and implicit of a fundamental change."But Rekt Capital's upside setup revealed little possibility of Bitcoin extending its rebound toward $48,000.
Notably, the profit target of an ascending triangle is calculated by measuring the maximum distance between the pattern's two trendlines and by subtracting that from the breakout level. The chart below assumes the breakout point to be anywhere between $37,500 and $45,000, meaning that a successful break below the triangle range could have Bitcoin drop to between $30,000 and $35,000.Interestingly, both $30,000 and $35,000 had acted as solid support levels in recent history.Flibflib also highlighted the $30,000-level for coinciding with the bottom of Bitcoin's logarithmic regression bands — a"tried-and-tested" support level.
"The confluence with this now sitting at the bottom of the weekly range is significant in our opinion and supports the idea that we will not see such a drawdown as in previous cycles."Nonetheless, an aggressive capitulation event near the $30,000-level could have Bitcoin fall refresh its downside target to the 200-week simple moving average , a"catch-all level" marking the end of previous bearish cycles in March 2020 and December 2018.