Bitcoin Soft in the Aftermath of Last Week’s Plunge

BTC/USD Analysis

The popular cryptocurrency comes from six consecutive negative weeks and the second worst of the year, during which it plunged to the lowest level since December 2020 (25,398), amidst the broader Cryptocurrencies rout.

Bitcoin was able to muster support after that low, but the recovery effort is failing today, at key technical levels, amidst broader risk-off mood that works against it. It rejects the critical 38.2% Fibonacci of its last leg down form this month's high to the lows, that could lead to further weakness.

Below this level, there is risk for new lows towards 24,151 region, although it may be a stretch at this point to talk about a sub-20,000 retreat.

On the other hand, the US Dollar does not seem particularly lively today and BTC/USD may find the opportunity to extend its recovery, to 50% Fibonacci (32,703). However, a significant change in sentiment would be required for a relief rally towards 36,600-37,600 and the EMA200, which looks like a toll order under current conditions.

Caution is required after last week's developments, while volatility is still elevated, as markets monitor various risk factors, including prospects of increased Crypto regulation.

Start Trading Bitcoin with Confidence

Get a free practice account today.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.