“Bitcoin had a bumpy road throughout 2022: the cryptocurrency started last year at $46,700 and today is trading at 64% of that value,” economist Damián di Pace had said in early 2023.
Bitcoin is close to $36,000 but is now slowing down after October closed at +28.50%. The price has been stuck below resistance for a week, at a cyclical level a window of weakness is approaching. The first support is at $33,000.
The situation of Bitcoin (BTC) is analyzed from a 1H chart, where it is evident that the price reached the resistance in the area of $35,750 – $36,000. In the chart, the sideways phase was created under resistance, before making a small increase to $36,000 and then starting to pull back.
Bitcoin Stops at $36,000 Resistance
Currently, BTC is trading at $34,750. and is seeing a correction after hitting the yearly high of $35,975. In these first days of November the price falls after an October that closed at +28.50%. It is interesting to note that in this phase there was a lateral absence of news related to the Spot BTC ETF, the market drivers that moved the price in the previous two weeks.
From a statistical point of view, October ended in green for the fifth consecutive year. An even longer series of positive performance occurred only in November, from 2012 to 2017. However, the last two years BTC closed November in negative.
Bitcoin Long Term Overview
To analyze the situation in more depth, it is necessary to expand the time frame starting with a weekly chart overview that goes from the all-time highs of $68,985 in November 2021, passing through the relative lows of $15,487 in November 2022.
The bearish phase that began after the historical highs was evident, culminating in the relative lows of a year ago, from where the current rebound began. If we focus on the last week, we clearly notice how BTC has reached the first resistance – target at $36,000.
The $36,000 level is obtained using Fibonacci retracements and corresponds to the 38.2% all-time high-low vector at $15,487, from the all-time high to the November ’22 lows. This level confirms the strength of the current trend but at the same time could also cause a slowdown in price growth.
The main resistance was located at $42,200, which corresponds to 50% Fibonacci, its breakout would mark the entry of bitcoin into a new bull market scenario.
In addition to the resistance levels, the updated supports after the new yearly high of $36,975 should be examined. The changes compared to last week are limited and now the first support level is at $28,150 while the main support passes in the $25,750 area. The event of a breakout of the latter could undermine the entire bullish stretch currently in force, opening a possible corrective scenario.
The Scenario in the Daily Chart
The daily chart highlights the news related to ETFs that boosted the price in recent weeks. The bullish objective is the break of $36,000, but a selling window is approaching, which coincides with contact with the resistance.
As for short-term supports, Bitcoin has a first level in the area at $33,000. Only with a loss from this level would we likely have a bearish acceleration with reaching around $31,800. The $31,800 and $30,500 levels are derived with the help of Fibonacci retracements, applied to the movement from the September lows to $24,910 to the yearly high.
By Leonardo Pérez
