Bitcoin (BTC) still hanging onto support – will it hold?

The last couple of days saw the bitcoin price fall as low as $56,500. However, despite a huge sell off from the Spot Bitcoin ETFs, the bulls were able to buy the price back up. $BTC is currently hanging onto the support at $59,000 by its fingertips. Will the bulls be able to hold the line?

Bears throw the kitchen sink at $BTC

The widely expected bitcoin dump down, perhaps to $51,000 and even below, has not yet materialised. The bears have thrown the kitchen sink at $BTC, and Wednesday’s massive net sell-off out of the Spot Bitcoin ETFs of $563.7 million might have been expected to provide that last tip over the edge. The pressure is unrelenting. Thursday saw yet another net outflow day, even though it was only $34.4 million. This was the seventh consecutive day of outflows.

$BTC holds the line

Source: Coingecko/TradingView

Looking at the chart for the daily time frame, the $BTC price has done heroically well to claw its way back above the last line in the sand of $59,000 and prevent this level from being turned into resistance. Nevertheless, the price is having trouble with getting back above the trend line, so there is still work to be done. In fact, to nullify this current down trend, a weekly close above $61,000 is probably the target. Weekends are usually bullish for $BTC, so there is the possibility that this could happen.

Price collapse could still take place

That said, taking things from the bears’ perspective, there could still be a further drop in price. Failure on the part of the bulls to take advantage of this bounce can mean that the dip down to around $52,000 or so could still take place.

$BTC ace in the hole is the weekly stochastic RSI

Source: Coingecko/TradingView

On the weekly time frame things do not look so bad. On the current weekly candle, a longer wick to the downside than to the upside is bullish, and adds buying pressure to the long wicks that have already come down to this area. There is also very strong support at $52,000, should there be a collapse. 

All this said, the ace in the hole for bitcoin is the stochastic RSI on the weekly. It can be noted at the bottom of the chart that the signal lines are bottoming out. At the end of play on Sunday, if the blue fast line crosses up, it might not be long before positive price momentum enables a complete reversal back to the upside.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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