Bitcoin Price Analysis: BTC eyes correction towards $36,000 before resuming the bull run
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Bitcoin’s (BTC/USD) impressive break through the $35K barrier appears to have lost steam this Saturday, as the bulls snap their four-day winning strea

  • BTC/USD erodes about $3000 from record highs of $41,987.
  • Technical charts suggest scope for further downside correction. 
  • Investors to buy the dips as Bitcoin is far from a local top.
  • BTC/USD erodes about $3000 from record highs of $41,987.
  • BTC/USD erodes about $3000 from record highs of $41,987.
  • Technical charts suggest scope for further downside correction. 
  • Technical charts suggest scope for further downside correction. 
  • Investors to buy the dips as Bitcoin is far from a local top.
  • Investors to buy the dips as Bitcoin is far from a local top.

    Bitcoin’s (BTC/USD) impressive break through the $35K barrier appears to have lost steam this Saturday, as the bulls snap their four-day winning streak after reaching fresh all-time-highs at $41,987 on Friday.

    Despite the corrective pullback of around $3000, the most favorite digital asset remains far from topping out, as suggested by the BraveNewCoin Liquid Index for Bitcoin.

    Bitcoin

    This particular technical index has been extremely accurate at predicting previous market tops and now suggests that bitcoin has plenty of room to rise before a significant correction gets underway.

      

    Bill Miller, veteran investor and mutual fund titan, said that bitcoin is still posed to move higher and even "considerably higher." His comments came after the no.1 coin surged past the critical $40K barrier, further adding credence to the view that the upside bias still remains intact.

    "I think it's more a risk management strategy than anything else to have a little money in bitcoin. “One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes,” Miller added.

    Although the broader picture favors the BTC bulls, the short-term outlook appears dour, as depicted by the bearish technical setup on the hourly and daily charts.

    outlook

    BTC/USD: Hourly chart

    BTC/USD: Hourly chart

    BTC/USD has confirmed a symmetrical triangle breakdown the hourly sticks, opening floors for a test of the measured target near $36,000.

    The breach of the 200-hourly moving average (HMA) at $39,207 exacerbates the pain in the crypto coin. The hourly Relative Strength Index (RSI) inches lower towards the oversold region, currently at 33.45, allowing more room for declines.

    A bearish crossover, represented by 21-HMA piercing the 100-HMA from above, also collaborates with the bearish view on bitcoin.

    Any pullbacks would need to clear critical resistance at $40,130 in order to negate the near-term downside bias. The next on the radar for the bulls would be the record highs near the $42K mark, beyond which the $44K level could be challenged.

    BTC/USD: Daily chart

    BTC/USD: Daily chart

    A very evident sign of caution for the BTC bulls is seen in the oversold 14-day RSI, which holds firmer at 81.14, as of writing.

    Therefore, the price could see an extension to the corrective trend, with eyes set on the immediate relevant support at $35,862. The level is 23.6% Fibonacci Retracement (Fibo) of the parabolic rise that kicked in from the November 26 low of $16,210 to record highs near $42K.

    BTC/USD: Additional levels to watch

    BTC/USD

    Overview
    Today last price 39107.46
    Today Daily Change -1556.75
    Today Daily Change % -3.83
    Today daily open 40664.21
     
    Trends
    Daily SMA20 29225.83
    Daily SMA50 23230.16
    Daily SMA100 18283.95
    Daily SMA200 14400.78
     
    Levels
    Previous Daily High 41987.21
    Previous Daily Low 36594.06
    Previous Weekly High 41987.21
    Previous Weekly Low 27772
    Previous Monthly High 29307.4
    Previous Monthly Low 17578.63
    Daily Fibonacci 38.2% 39927.03
    Daily Fibonacci 61.8% 38654.24
    Daily Pivot Point S1 37509.78
    Daily Pivot Point S2 34355.35
    Daily Pivot Point S3 32116.63
    Daily Pivot Point R1 42902.93
    Daily Pivot Point R2 45141.64
    Daily Pivot Point R3 48296.08

     

    BTC/USD

    Overview
    Today last price 39107.46
    Today Daily Change -1556.75
    Today Daily Change % -3.83
    Today daily open 40664.21
     
    Trends
    Daily SMA20 29225.83
    Daily SMA50 23230.16
    Daily SMA100 18283.95
    Daily SMA200 14400.78
     
    Levels
    Previous Daily High 41987.21
    Previous Daily Low 36594.06
    Previous Weekly High 41987.21
    Previous Weekly Low 27772
    Previous Monthly High 29307.4
    Previous Monthly Low 17578.63
    Daily Fibonacci 38.2% 39927.03
    Daily Fibonacci 61.8% 38654.24
    Daily Pivot Point S1 37509.78
    Daily Pivot Point S2 34355.35
    Daily Pivot Point S3 32116.63
    Daily Pivot Point R1 42902.93
    Daily Pivot Point R2 45141.64
    Daily Pivot Point R3 48296.08

    BTC/USD

    Overview
    Today last price 39107.46
    Today Daily Change -1556.75
    Today Daily Change % -3.83
    Today daily open 40664.21
     
    Trends
    Daily SMA20 29225.83
    Daily SMA50 23230.16
    Daily SMA100 18283.95
    Daily SMA200 14400.78
     
    Levels
    Previous Daily High 41987.21
    Previous Daily Low 36594.06
    Previous Weekly High 41987.21
    Previous Weekly Low 27772
    Previous Monthly High 29307.4
    Previous Monthly Low 17578.63
    Daily Fibonacci 38.2% 39927.03
    Daily Fibonacci 61.8% 38654.24
    Daily Pivot Point S1 37509.78
    Daily Pivot Point S2 34355.35
    Daily Pivot Point S3 32116.63
    Daily Pivot Point R1 42902.93
    Daily Pivot Point R2 45141.64
    Daily Pivot Point R3 48296.08

    BTC/USD

    Overview
    Today last price 39107.46
    Today Daily Change -1556.75
    Today Daily Change % -3.83
    Today daily open 40664.21
     
    Trends
    Daily SMA20 29225.83
    Daily SMA50 23230.16
    Daily SMA100 18283.95
    Daily SMA200 14400.78
     
    Overview
    Today last price 39107.46
    Today Daily Change -1556.75
    Today Daily Change % -3.83
    Today daily open 40664.21
    Overview Overview Overview Today last price 39107.46 Today Daily Change -1556.75 Today Daily Change % -3.83 Today daily open 40664.21 Today last price 39107.46 Today last price39107.4639107.46 Today Daily Change -1556.75 Today Daily Change-1556.75-1556.75 Today Daily Change % -3.83 Today Daily Change %-3.83-3.83 Today daily open 40664.21 Today daily open40664.2140664.21
     
    Trends
    Daily SMA20 29225.83
    Daily SMA50 23230.16
    Daily SMA100 18283.95
    Daily SMA200 14400.78
    Trends Trends Trends Daily SMA20 29225.83 Daily SMA50 23230.16 Daily SMA100 18283.95 Daily SMA200 14400.78 Daily SMA20 29225.83 Daily SMA2029225.8329225.83 Daily SMA50 23230.16 Daily SMA5023230.1623230.16 Daily SMA100 18283.95 Daily SMA10018283.9518283.95 Daily SMA200 14400.78 Daily SMA20014400.7814400.78
     
    Levels
    Previous Daily High 41987.21
    Previous Daily Low 36594.06
    Previous Weekly High 41987.21
    Previous Weekly Low 27772
    Previous Monthly High 29307.4
    Previous Monthly Low 17578.63
    Daily Fibonacci 38.2% 39927.03
    Daily Fibonacci 61.8% 38654.24
    Daily Pivot Point S1 37509.78
    Daily Pivot Point S2 34355.35
    Daily Pivot Point S3 32116.63
    Daily Pivot Point R1 42902.93
    Daily Pivot Point R2 45141.64
    Daily Pivot Point R3 48296.08
    Levels
    Previous Daily High 41987.21
    Previous Daily Low 36594.06
    Previous Weekly High 41987.21
    Previous Weekly Low 27772
    Previous Monthly High 29307.4
    Previous Monthly Low 17578.63
    Daily Fibonacci 38.2% 39927.03
    Daily Fibonacci 61.8% 38654.24
    Daily Pivot Point S1 37509.78
    Daily Pivot Point S2 34355.35
    Daily Pivot Point S3 32116.63
    Daily Pivot Point R1 42902.93
    Daily Pivot Point R2 45141.64
    Daily Pivot Point R3 48296.08
    Levels Levels Levels Previous Daily High 41987.21 Previous Daily Low 36594.06 Previous Weekly High 41987.21 Previous Weekly Low 27772 Previous Monthly High 29307.4 Previous Monthly Low 17578.63 Daily Fibonacci 38.2% 39927.03 Daily Fibonacci 61.8% 38654.24 Daily Pivot Point S1 37509.78 Daily Pivot Point S2 34355.35 Daily Pivot Point S3 32116.63 Daily Pivot Point R1 42902.93 Daily Pivot Point R2 45141.64 Daily Pivot Point R3 48296.08 Previous Daily High 41987.21 Previous Daily High41987.2141987.21 Previous Daily Low 36594.06 Previous Daily Low36594.0636594.06 Previous Weekly High 41987.21 Previous Weekly High41987.2141987.21 Previous Weekly Low 27772 Previous Weekly Low2777227772 Previous Monthly High 29307.4 Previous Monthly High29307.429307.4 Previous Monthly Low 17578.63 Previous Monthly Low17578.6317578.63 Daily Fibonacci 38.2% 39927.03 Daily Fibonacci 38.2%39927.0339927.03 Daily Fibonacci 61.8% 38654.24 Daily Fibonacci 61.8%38654.2438654.24 Daily Pivot Point S1 37509.78 Daily Pivot Point S137509.7837509.78 Daily Pivot Point S2 34355.35 Daily Pivot Point S234355.3534355.35 Daily Pivot Point S3 32116.63 Daily Pivot Point S332116.6332116.63 Daily Pivot Point R1 42902.93 Daily Pivot Point R142902.9342902.93 Daily Pivot Point R2 45141.64 Daily Pivot Point R245141.6445141.64 Daily Pivot Point R3 48296.08 Daily Pivot Point R348296.0848296.08

     

     

    From: FXSTREET