Bitcoin price is back at $37,000, recovering from a frightening plunge to as low as $30,000. The selloff struck fear into the market unlike never before, making buying the dip a scary risk to take. However, there’s several signs that the bottom could be in, all while sentiment has turned fully bearish and the market expects far deeper lows. Could that in and of itself be a sign the bottom is in? Recapping The Recent Crypto Market Correction The recent peak in Bitcoin price was a “top” that very few saw coming even though from a technical standpoint, it was obvious. BTC was moving off exchanges and fundamentals supported much higher prices, but after such a strong run up, the top trending cryptocurrency was bound to correct. And correct it did – by a full 50% and then some. Historically it is one of the most severe bull market corrections. The severity of the Black Thursday move caused a polar opposite reaction to the upside. Related Reading | Volatility Ahead: Why The Chaos In Bitcoin And Crypto Is Only Beginning But could a similar severity in the recent collapse also be a catalyst for propelling prices much higher, and not the beginning of a bear market as many would expect? For one, sentiment is ripe for a reversal. Stacking Up The Signs That The Bottom Is In For Bitcoin The crypto market fear and greed index is at one of the most frightened readings yet, after spending nearly a full year in greed mode. Contrarian investors all recommend buying the blood in the streets and being greedy when others are fearful. Being fearful while others were greedy, clearly has paid off for anyone who took out a short position at the top – as rare as that may have been. But there’s a lot more signs out there than that. BTC bounced right on rising RSI support | BTCUSD on TradingView.com Perhaps the biggest technical factor suggesting that Bitcoin has bottomed, is the fact that three-day Relative Strength Index has bounced off an ascending trendline that’s supported all of the past bottoms in crypto. There’s a bounce in December 2018 and again on Black Thursday – and once again now. A similar story can be seen in the chart above which also includes a look at how the 2017 bull market held a similar rising support structure. Related Reading | Broken Parabola: Mapping Out The Bitcoin Bull Market And More A bottom here, suggests one more impulse in Bitcoin before the bull market has ended. That means that the pain from the recent shakeout isn’t yet over, as sellers could be forced to FOMO back in a much higher prices, helping to drive the fury of the final impulse. Interestingly, the crash landed right where the parabolic curve for the greater bull trend would support another base to rise higher, adding more credence to the bottom being in. A long-term bull trend is still holding | BTCUSD on TradingView.com Also on the three-day, Bitcoin price is holding in the Ichimoku cloud after piercing below it. At support there’s a bullish hammer candle forming. If bulls can follow through here and push the leading cryptocurrency by market cap out of the cloud, the bull market will remain unbroken and new highs will be in the forecast. Remember, technicals said a top was in and no one saw it coming. Currently, things are some what mixed but the case for the bottom builds by the day. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin price tested the $30,000 support and it is now recovering higher against the US Dollar. BTC is likely to face a strong selling interest near $37,000 and $38,000. Bitcoin extended its decline and it even traded close to the $30,000 support. The price is now well below the $38,000 resistance and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $37,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to face a strong selling interest near the $37,000 zone and the 100 hourly SMA. Bitcoin Price is Facing Hurdles Bitcoin failed to stay above the $35,000 support and it extended its decline. BTC even broke the $32,000 support zone and it settled well below the 100 hourly simple moving average. It almost tested the $30,000 support zone and a low was formed near $31,037. Recently, it started an upside correction above the $32,000 and $33,000 levels. There was a break above the 50% Fib retracement level of the recent decline from the $38,827 swing high to $31,037 swing low. Bitcoin is now facing resistance near the $35,800 level. It represents the 61.8% Fib retracement level of the recent decline from the $38,827 swing high to $31,037 swing low. Source: BTCUSD on TradingView.com The main resistance is now forming near the $37,000 level. There is also a key bearish trend line forming with resistance near $37,000 on the hourly chart of the BTC/USD pair. The 100 hourly simple moving average is also near the $37,000 resistance zone. A clear break above the trend line resistance and the 100 hourly simple moving average could open the doors for a larger recovery towards the $40,000 level. An intermediate resistance is near the $38,000 level. Fresh Drop in BTC? If bitcoin fails to clear the $37,000 resistance, there is a risk of a fresh decline. An initial support on the downside is near the $34,000 level. The first major support is now forming near the $32,000 zone. A downside break below the $32,000 support could start a fresh decline towards the $30,000 support zone in the near term. Technical indicators: Hourly MACD – The MACD is slowly gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $34,000, followed by $32,000. Major Resistance Levels – $35,800, $37,000 and $38,000.

Bitcoin price plummeted faster and lower than anyone expected, leaving behind a trail of liquidations and investors in shock. Crypto prices across the board tanked by more than 50%, and in most cases have already rebounded by at least 25% of what was lost. The sudden rollercoaster after such a steep ascent makes sense, sending volatility soaring. Except even with this much mayhem across the market right now, it is still nothing compared to what the cryptocurrency is used to. This fact could suggest that the bull market has only just begun with the latest crash. Comparing Crypto To A Thrill-Filled Theme Park Ride Theme parks can be a blast. Rollercoasters are especially fun, but definitely can give you a good scare. The ride starts slowly, slow building and rising in a methodical manner to keep anticipation climbing as heights increase. Once you get high enough, it is hard not to stop paying full attention to the ride to get a load of the view. It is in that moment when the momentum turns and in a flash you’re back where your started. Sound familiar? Related Reading | Lack Of “Capitulation” Volume Suggests Bitcoin Is Doomed To More Downside Bitcoin, like rollercoasters, can have a lot of twists and turns, and this latest crash hasn’t been very different than the cryptocurrency’s usual behaviors. The last year of “only up” has been a lot more unusual. Bitcoin usually rises and falls, wiping out 60 to 70% from the price per coin and market cap. It is only now with a mere 50% crash that volatility is picking up, suggesting either further collapse, only the start of the bull run, or possibly both scenarios. Historical volatility suggests that the Bitcoin is only just getting warmed up | Source: BTCUSD on TradingView.com HODL On: Notorious Bitcoin Volatility Has Only Just Returned Historical volatility is a tool used to measure – just like it sounds – how volatile an asset is throughout its history. When Bitcoin was in the earliest phases of price discovery, volatility was insanely high, and after the dust settled, it stayed flat for several years. It wasn’t until late 2017 when although prices had appreciated in crypto, the bull market really got going and historical volatility returned to Bitcoin. Related Reading | Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken Except it lasted for an even shorter phase than before. Even the small bullish impulse to $14,000 in mid-2019 resulted in more volatility overall in the cryptocurrency market. Today, even with a massive $28,000 per coin collapse, volatility in Bitcoin is still uncharacteristically low. This latest shock to the market, might only be the start of a storm that’s to come. Can you hold on and survive? Featured image from iStockPhotos, Charts from TradingView.com

Bitcoin price is recovering losses and trading above $40,000 against the US Dollar. BTC is likely to accelerate higher if there is a clear break above the 100 hourly SMA at $42,000. Bitcoin is showing signs of a decent recovery above the $40,000 level. The price is now facing resistance near $42,000 and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to start a strong rally if it settles above $42,000 and the 100 hourly SMA. Bitcoin Price Starts Recovery Bitcoin remained stable above the $36,500 and $38,000 support levels. BTC extended its recovery wave above the $40,000 resistance level and moved into a short-term positive zone. There was a clear break above the 50% Fib retracement level of the last key decline from the $45,774 swing high to $29,748 swing low. Moreover, there was a break above a major bearish trend line with resistance near $42,000 on the hourly chart of the BTC/USD pair. The pair is now facing resistance near $42,000 and the 100 hourly simple moving average. The 76.4% Fib retracement level of the last key decline from the $45,774 swing high to $29,748 swing low is also acting as a resistance. Source: BTCUSD on TradingView.com A clear break above the $42,000 zone and the 100 hourly simple moving average could open the doors for a larger rally. An immediate resistance is near the $43,200 level. The next major resistance is near the $45,775 level. A close above the $45,775 level could set the pace for a move towards the $48,000 resistance zone. Fresh Drop in BTC? If bitcoin fails to clear the $42,000 resistance, there is a risk of a fresh decline. An initial support on the downside is near the $40,000 level. The first major support is now forming near the $38,000 zone. A downside break below the $38,000 support could start a fresh decline towards the $35,000 support zone in the near term. Technical indicators: Hourly MACD – The MACD is slowly losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $40,000, followed by $38,000. Major Resistance Levels – $42,000, $43,200 and $45,775.

Bitcoin price was dumped yesterday by over 20% against the US Dollar. BTC is recovering from $30K and it might attempt a bullish reversal above $40K. Bitcoin tumbled below the $40,000 and $35,000 support levels. The price is now trading well below $42,000 and the 100 hourly simple moving average. There is a crucial bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to start a strong bullish move if there is a break above $40,000. Bitcoin Price Starts Recovery Bitcoin failed to stay above the $42,000 and $42,000 support levels. BTC tumbled over 20% and it broke many important supports near $35,000. There was also a spike below the $32,000 support zone. A low was formed near the $29,750 and the price is now correcting higher. It broke the $35,000 resistance zone. There was also a break above the 50% Fib retracement level of the recent drop from the $45,775 swing high to $29,750 swing low. However, the price is trading well below $42,000 and the 100 hourly simple moving average. An immediate resistance is near the $39,000 level. There is also a crucial bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the recent drop from the $45,775 swing high to $29,750 swing low. Source: BTCUSD on TradingView.com A successful break above the trend line resistance could set the pace for a strong move above the $40,000 resistance. The next major resistance is near the $42,000 level. A close above the $42,000 level could set the pace for a strong rally in the coming sessions. The next major resistance sits near the $46,000 level. Fresh Drop in BTC? If bitcoin fails to clear the $39,200 and $40,000 resistance levels, there is a risk of a fresh decline. An initial support on the downside is near the $36,000 level. The first major support is now forming near the $34,000 zone. A downside break below the $34,000 support could start a fresh decline towards the main $30,000 support zone in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is likely to surpass the 50 level. Major Support Levels – $36,000, followed by $34,000. Major Resistance Levels – $39,000, $40,000 and $42,000.