- Bitcoin price slips below the 200 three-day SMA, indicating a reversal is likely to occur.
- Ethereum price digs deeper into the support confluence, extending from $2,800 to $3,000.
- Ripple price provides sidelined buyers another opportunity to hop on the up-only bandwagon.
Bitcoin price has slid below a crucial support level briefly, indicating that history is repeating. The last two times BTC swept this barrier, a massive upswing with gains is what followed. Therefore, this can be considered a buying opportunity.
Bitcoin price needs to stabilize before moving higher
Bitcoin price is traversing an ascending parallel channel on a three-day time frame. Since January 13, BC set up three higher highs and two higher lows, which when connected using trend lines results in an ascending parallel channel.
The latest downswing caused BTC to drop 9.8% to retest the 200-three-day moving average at $39,651. The last two tags of this moving average have caused BTC to trigger a massive run-up, but after a wick to the downside.
Therefore, investors need to exercise caution until that wick to the downside. After this move, market participants can expect an uptrend that pushes BTC to tag the yearly open at $46,198. Clearing this blockade could extend the run-up to the $50,000 psychological level.
BTC/USDT 3-day chart
A breakdown of the $34,752 support level will invalidate the ascending parallel channel and the bullish thesis while opening the doors to crash to $30,000 or lower.