A widely-followed crypto analyst says Bitcoin (BTC) is showing strength but needs to flip certain levels to continue its recent near 10% rebound.
In a YouTube update, Van de Poppe tells his 165,000 subscribers that BTC is still carving out a comfortable range for itself.
“We have been taking the actual low there around $36.4k, and as a result, we bounce back up towards $38k. This means that we’re still constructing a range.”
Though price action over the past 24 hours has been positive for the Bitcoin markets, Van de Poppe says BTC is still finding resistance at current levels.
“We can clearly state that the Bitcoin markets are still fighting a resistance. Anything below this level here at $38.8k is not really something that I’d be interested in.
Yes, we are getting a beautiful bounce back up, but the volume is still relatively low, indicating that we are just not seeing all the strength that we need. But, if we do break above $38.8k, I’m assuming that $41.5k is next. So this crucial breaker [$38.8k] is still the one to watch.
We also have this one that we have been acting on as support at $38.2k, which could be hitting resistance here.”
Van de Poppe says Bitcoin dropping back towards $36,000 is still in the realm of possibilities, though such a drop could then form a bullish divergence for the leading crypto by market cap.
“One of the scenarios to bottom out is still having a re-test of the actual lows, creating a bullish divergence in that region, and then we are eager for a reversal. So, this spot [$38.2k], for me, is the crucial resistance zone. If we do break through it and flip this for support, that is going to be a long trigger in which I want to take the long to watch $41.5k for a nice 8% gain.”
Bitcoin is currently up 9.4% on the day, trading for $40,336.
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