Bitcoin (BTC) touched $ 47,961, the levels of May 16. BTC has tested this resistance zone twice and formed a double top as a result. It may be a sign of correction or a slowdown in the coming days.
Volatility and the volume of purchases of BTC have reduced, as the Eagle indicator is showing a bearish divergence. It is likely to put downward pressure on BTC in the coming days.
The 21 SMA around 46,500 located on 4-hour charts may provide some support to BTC as long as it trades above this line. Bitcoin is likely to try to climb towards the resistance level and psychological level of $ 50,000 (8/8).
The level of $46,000 is the immediate support. If the price breaks this level, it may fall to the support of 6/8 of Murray ($43,750). This is the key level because there we can expect a new bullish rebound and an opportunity to buy BTC.
On the contrary, if the bearish force prevails, a decline is expected to the support zone around the 200 EMA and the 4/8 Murray line located at $ 37,500.
Our outlook will be bearish due to the factor of the double-top pattern and the Eagle indicator that is showing a bearish signal. We should wait for the BTC to trade below the SMA 21, and we can sell with targets at $ 43,750 and $ 37,500.
Support and Resistance levels for August 17 - 18, 2021
Resistance (3) 49,859
Resistance (2) 48,876
Resistance (1) 47,451
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Support (1) 45,042
Support (2) 44,103
Support (3) 42,633