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Bitcoin Price Analysis: BTC/USD Holds Key Level

Last week was developing in a negative scenario: the bulls failed to hold the initiative. Every pullback has followed by an even deeper fall. 

A weekly candle is negative for bulls, however, we can assume that the price will not go below $7000. So, now the bitcoin price has fallen by 61% from its top, which lasted from March to December. It's a good level for the beginning of the growth — view, as the price bounced from the levels of 38.2 Fib and 50 Fib.  It is hoped that this will happen this time.

BTC-USD weekly chart

If you analyze the daily chart, then there is an interesting picture. We will assume that the correction wave C is now coming to an end. Simultaneously, we are in the lower part of the wedge, within which the price has been moving for a long time.

If the assumption is correct, growth will begin very soon,the first goal of which will test the upper limit of the wedge in the area of $10 000-10 500. Further, there may be a rollback, a retest of support, and the formation of a second wave.  Then the breakdown of the descending trend line and the formation of the longest wave, whose goal will be to retest the previous haya. If this happens, then in the summer you can see the price of $ 30 000.

BTC-USD weekly chart 2

Now a very important role is played by fundamental factors. Restrictive measures in respect of crypto-currencies in different countries, scheduled for February 6, is Tether proceedingand in addition to this Chinese new year leave a strong negative background. We need positive news that would stir up the cryptocurrency market.

Negative scenario

Let's consider a negative scenario. If the wedge does not work and the downward movement continues, then a further strong support level will be $ 5,600, from which the price pushed up forcefully in November, as well as $ 4,500, where the most powerful long-term support takes place. In this case, the correction will reach 80% from its top.

BTC-USD weekly chart 3