Bitcoin’s price rally slowed down after getting rejected at the 200-day moving average line amid the $48K range.
One day delay
The price has fallen since the rejection of the MA200 and is currently retesting the 50 and 100 day moving average lines. These MAs also printed a bullish cross recently, as the 50-day MA crossed above the 100-day MA.
The $42K level is currently holding the price, is also a significant horizontal support level. This level was a resistance turned into support after a bullish breakout a few weeks ago.
However, if this area fails to hold the price, a retest of the $36,000 area would be a likely scenario.
On the other hand, if the price rebounds from this support level, the $48K zone and the 200-day moving average would be likely retested.
The 4 hour delay
On the 4 hour timeframe, it is evident that once the price hit the top of the large bearish flag pattern, it was rejected on the downside and made a higher high and lower.
This price action indicates that the bears are now controlling the market, and a new downtrend could be on the horizon.
However, the $42,000 level could act as strong support. On the bullish side – the critical supply zone remains around the $47,000 level, which could initiate the next bearish leg and a higher low.
In the bearish scenario, if the price loses the $42K support, a retest of the $36K level and the bottom of the bearish flag would be imminent. A bearish breakout from the base of the flag would validate it and form a bearish continuation and probably a new lower low below the $33K bottom – the lowest level for the past months.
