Bitcoin (BTC) started the mid-week on a positive note as BTC/USD recovered from recent lows of $18,527 and climbed with further gains on Saturday. Bitcoin ended Friday with impressive gains, led by a 1.08% rebound in global crypto market capitalization as nearly all major coins within the top 10 closed the day in the green. At the time of this post, the pair was increasing by 1.50% in 24 hours after recording a daily high of $21,815. Even though the current optimism may be premature, the first cryptocurrency was able to recover above $21,000 key levels. Crypto investors are becoming more comfortable with the slow BTC recovery amid earlier threats of further decline. BTC buyers can still manage a soft landing above $18,000 in the event of a sharp drop in buying activity. The recent price increase in Bitcoin has spiked liquidations. Many of BTC’s leveraged short positions are being liquidated as a result of the price increase that has been observed. The total crypto market liquidations, according to Coinglass, have come close to $200 million in the past 24 hours.
Key Levels
Resistance Levels: $27,000, $25,000, $22,000
Support Levels: $20,000, $18,500, $15,000
BTC/USD Daily ChartThe BTC/USD pair quickly recovered from weekly lows by nearly $3,000, and it now appears to be swinging back toward the $22,000 level and past the daily moving average (MA 50). Once more, the pair sparked a significant amount of dip-buying at the round-number level of $19,000, which may now be a crucial level for near-term traders.
Any potential push-up might encounter significant resistance at the horizontal barrier past the $22,000 mark, which, if removed, could serve as a new catalyst for bulls. Follow-through orders have the potential to raise the pair back to the significant range, around the $25,000s, as technical indicators on the daily chart have continued to gain positive momentum while maintaining their bullish bias.
BTC/USD 4-Hour ChartBulls are forecast to predict a steady break above the short-term resistance level of $22,000, above which the pair is forecast to accelerate its traction toward the $25,000 resistance area. The rebound trend may be maintained to test the next strong barrier located near the horizontal region of $27,000, which is significantly above the $25,000 level.
Initial bias on the 4-hour chart remains neutral at the end of the week, with some consolidation likely to follow. In this case, a steeper pullback scenario may result in short-term sentiment remaining range-bound as long as the support level of $19,000–$18,500 holds. The BTC/USD could be vulnerable to a further decline under $22,000 and toward the $19,000 congestion zone as a result of some subsequent sell-offs.
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