Bitcoin remains under pressure in early 2024, with BTC still struggling to gain traction. However, according to trader Ali, the foremost cryptocurrency faces a significant technical test if $38K fails decisively on a weekly closing basis:
“A close below $38,000 on the weekly chart could signal a downturn for $BTC, targeting the strong support cluster around $33,000.”
Ali highlights the confluence of technical support around $33K, noting that it combines the lower parallel channel boundary, the 0.5 Fibonacci retracement, and the crucial 50-week simple moving average.
However, sentiments remain mixed around whether the current $37K-$38K area will manage to hold. Trader David expects lower levels over the next few months before Bitcoin finds a sustainable bottom.
“To think $37,000 – $38,000 will be the bottom of this overall correction. Well, still 2-3months of the corrective phase left & it won’t be in a straight line, so you’ll have every reason to doubt it.”
David sees concern escalating only below $35K en route to even lower support. This aligns with the typical timing of Bitcoin’s bottoms relative to the halving cycles.
So in summary, Ali and David provide an insightful technical and macro perspective on Bitcoin’s precarious position. The path of least resistance still seems lower at the moment, but the bull case depends on the zone around $33K managing to hold up as strong support. Bitcoin is currently hovering around $39,000 to $40,000.
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