Bitcoin Price Analysis: Is the Bottom Near?

Bitcoin price drops significantly after hitting 22-month high of $49,000 in the last month.

Expert Analysis 6 Factors Show Bitcoin Price Won’t Fall Below $37,800

In the past month, Bitcoin’s price has taken a dip after reaching a 22-month high of $49,000, causing concerns about the future of the ongoing bull run. However, market analyst Marco Johanning suggests that the bottom of the current downtrend may be near, potentially setting the stage for a price reversal.

Bitcoin Price to Avoid Plummeting to Low $30,000s

According to Johanning, Bitcoin is likely to reclaim the $41,500 level or even rise from a lower level if a specific scenario unfolds. He points out that there is significant liquidity around the $39,000 mark, which has been touched multiple times recently. This indicates a strong presence of buyers at these levels, preventing the price from dropping further.

Johanning dispels the skepticism about a drop into the low $30,000 range, emphasizing that the primary liquidity lies below $40,000. Traders who profited from the low $30,000 range have likely adjusted their stop orders to protect their gains, creating a layer of support below the recent equal lows. This support, combined with a daily order block at $37,700 and high timeframe support at $38,500, suggests the potential for significant buy pressure in these price regions.

Additionally, Johanning highlights the likelihood of filling Chicago Mercantile Exchange (CME) gaps and imbalances, with the next imbalance anticipated below $33,000.

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Short Squeeze Rally Imminent?

Johanning points out that there are many bears waiting to short the market once the price reverses. He predicts that a short squeeze could occur, leading to a rapid price increase. In terms of Fibonacci retracement levels, Johanning suggests that if Bitcoin has already lost the $40,200 level, it could potentially fall to the 0.5% Fibonacci level, which coincides with the $37,800 level.

According to Johanning’s analysis, the price may briefly touch $37,800 before closing above the high timeframe support level of $38,500, potentially signaling an upward movement.

The Battle for Support Wall at $38,500

With Bitcoin’s current price at $38,900, the support wall at $38,500 will be closely observed. If the support wall fails to hold, the market will pay close attention to how the $37,800 price level performs and whether it aligns with Johanning’s analysis.

Image source: BTCUSDT on TradingView.com

Q&A: Taking a Deeper Dive into Bitcoin Price Analysis

Q: What are CME gaps, and why are they significant in Bitcoin price analysis?

CME gaps refer to price differences between the closing and opening prices of Bitcoin futures contracts on the Chicago Mercantile Exchange. These gaps often act as levels of interest for traders and are believed to be filled at some point in the future. Traders pay attention to these gaps as they can provide insights into potential price movements and levels of support or resistance.

Q: How does Fibonacci retracement play a role in predicting Bitcoin price levels?

Fibonacci retracement is a popular technical analysis tool that traders use to determine potential levels of support and resistance. It is based on the mathematical sequence discovered by Leonardo Fibonacci. The most commonly used levels are 0.382, 0.5, and 0.618, corresponding to 38.2%, 50%, and 61.8% retracements, respectively. Traders believe that these levels act as significant support or resistance areas, influencing price movements.

Q: What is a short squeeze, and how can it impact Bitcoin’s price?

A short squeeze occurs when a heavily shorted asset experiences a rapid price increase, forcing short sellers to close their positions by buying back the borrowed shares. This rush of buying can lead to a further increase in price as short sellers scramble to cover their positions, creating a feedback loop. In the context of Bitcoin, a short squeeze could occur if there is a sudden reversal in the price after a prolonged bearish period.

Conclusion: The Bulls Await

While Bitcoin’s recent decline has raised concerns, there are indications that the bottom may be near. Market analyst Marco Johanning provides valuable insights into the price movement, highlighting the presence of significant liquidity below $40,000 and the potential for notable buy pressure at specific price levels.

As the market awaits the fate of the support wall at $38,500 and the performance of the $37,800 level, traders and investors should keep a close watch on these key price regions. A potential short squeeze rally could further amplify the price increase, adding to the bullish sentiment.

So, buckle up, fellow crypto enthusiasts, as the battle for Bitcoin’s price continues! 🚀

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References:

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2. The Marco Jo Tweet about Bitcoin price

3. JP Morgan Likelihood of Spot Ethereum ETFs Getting Approved

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