The rebound of Bitcoin began along with improved risk sentiment on Thursday after losing almost 11%. BTC/USD had hit a one-month low of $34,322 after almost $200 billion worth of crypto liquidations as per Coinglass. Earlier the crypto market’s big sell-off was attributed to the significant correction in emerging markets. BTC recovered after a three-day slide from $34,322 to $39,720 in response to the recent geopolitical uncertainties on Thursday. Dip buying continues from the day’s low of $38,016 and rose to a daily high of $39,716 at the time of this analysis. Investors believe that Bitcoin’s surprising rebound could also be the result of a so-called short squeeze. The effect of the conflict between the Kremlin and Ukraine on the markets remains extremely chaotic as news of the situation creates geopolitical uncertainties. However, Bitcoin has no foe or friend as it offers freedom without political or economic limitations.
Key Levels
Resistance Levels: $45,000, $43,000, $40,000
Support Levels: $37,500, $35,000, $33,000
BTC/USD Daily ChartBitcoin began a severe drop versus the US Dollar under $40,000 at the start of the week. The BTC/USD pair entered a negative zone after trading below the $35,000 support level. However, the pair rebounded swiftly after a low was formed at $34,322, and it’s now repairing losses. It is currently trading near the $40,000 level of resistance.
BTC failed to surpass $40,000 and might correct lower, but it remained stable above the $37,500 support. The relative strength index (RSI) has reversed higher in the negative region, while the price is strengthening its bullish move in an upside correction to retest the $40,000 mark before attention turns to MA 50 which might halt any additional bullish actions.
BTC/USD 4-Hour ChartLooking at the 4-hours chart, the pair traded as low as $34,322 and recently corrected higher. It is now attempting an upside break above the $40,000 resistance and the 4-hour moving average (MA 200). There is also a major bearish trend forming with the 4-hour moving average (MA 50) support on a break of $38,500 lower on the same chart.
In the short-term picture, the ranging outlook came back into play after a bounce from the $34,322 low. If there is no upside break, the pair could decline below the $38,000 level. The next key support is near $37,500. If there is a downside break, the pair could decline towards the $35,000 level. Any more losses might send the pair towards the $33,500 level.
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