Bitcoin failed to hold above the $27,000 mark, resulting in a return to the $26,000 range. Explore our in-depth analysis of the cryptocurrency market, focusing on Bitcoin (BTC) and Pax Gold (PAXG).
Bitcoin (BTC)
As anticipated in our yesterday’s analysis, fundamental factors, particularly the delay in the SEC's decision on the Bitcoin ETFs, have exerted a substantial influence on the BTC price dynamics. Bitcoin has retraced to the $26,000 level and is currently trading within the support zone ranging from $25,350 to $26,000. If the downward trend persists, BTC may undergo another test at the "psychological level" of $25,000 and, potentially, establish a new low below $24,000.
The nearest zone with sell orders encompasses the range of $26,300 to $26,600. Further upward, resistance levels are situated at $27,200 and within the range of $27,700-$28,200. The descending trend could be considered terminated upon the price firmly securing itself above the $28,600 level.
Given the significant correlation between BTC and ETH, analyzing the Ethereum price or other altcoins at this moment may not provide meaningful insights. Instead, a more prudent approach would involve evaluating the performance of assets within the traditional financial market, such as gold.
BTC chart on the H1 timeframe
Pax Gold (PAXG)
It's worth noting that the correlation between gold and BTC persists during upward movements, whereas the response of the precious metal to cryptocurrency declines is less consistent. Our previous analysis of PAXG has been validated, with the asset's price rebounding from the support range of $1,865-$1,895. The immediate target for buyers lies within the range of $1,955-$2,000, with potential sell orders at the annual high of $2,052.
In the event of unforeseen developments, PAXG might undergo a correction and retrace to the $1,865-$1,895 zone, with the possibility of testing the $1,800-$1,834 range. This scenario presents a favorable opportunity for initiating spot market investments in the asset.
PAXG chart on the Daily timeframe
During weekends, financial markets usually exhibit reduced volatility, and we can expect a similar pattern this time.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNCrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNCrypto:
