Bitcoin Holds $30K Support After Volatile Shakeout; Resistance at $36K

BTC 6 23 2021 LearnCrypto Powered By Wyckoff SMI 2024

Bitcoin (BTC) returned above the $30,000 level on Tuesday after a volatile trading session. Buyers quickly stepped in as oversold conditions appeared on intraday charts. The next level of resistance is seen around $36,000, which could limit further upside.

The world’s largest cryptocurrency by market value was trading around $34,000 at press time and is up 9% over the past 24 hours.

Screen Shot 2021 06 23 at 6.49.22 AM LearnCrypto Powered By Wyckoff SMI 2024
Bitcoin four-hour chart shows support and resistance levels with RSI.
Source: TradingView
  • The near-10% price drop on Tuesday was typical of a shakeout, which signals a period of market turmoil when sellers capitulate.
  • Bitcoin’s two-month downtrend appears exhausted after the relative strength index (RSI) on the daily chart registered a higher low. This means buyers could remain active towards upper resistance levels.
  • The RSI on the four-hour chart is not yet overbought, although bitcoin is still below the 100-period moving average, suggesting resistance could be found at $36,000.
  • Stronger resistance is seen at $40,000 which is near the upper bound of a month-long range

By: Damanick Dantes

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