Bitcoin Investors Eye Recovery Amid Market Downturn

  • Bitcoin has experienced a significant decline, dropping below the critical support zone of ZAR 511,460, with the lowest dip reaching ZAR 506,694. Despite the drop, the cryptocurrency is attempting a recovery wave, triggering cautious optimism among South African investors.
  • Key resistance and support levels are highlighted for Bitcoin's price. Notably, if Bitcoin can close above ZAR 526,500, this could signal a fresh upswing in the cryptocurrency's value potentially up to ZAR 532,870. However, there's significant resistance at various levels, such as ZAR 514,942 and ZAR 522,402.
  • If Bitcoin fails to overcome the immediate resistance, the cryptocurrency may continue its downward trend, possibly towards concerning levels as low as ZAR 482,125. While potential for recovery exists, the presence of bearish trends suggests investors must remain cautious.

The world’s leading cryptocurrency, Bitcoin (BTC), has experienced a noteworthy decline recently, plunging beneath the vital support zone of approximately ZAR 511,460. South African investors, who have been closely monitoring the volatile shifts in the digital currency market, noted with some concern that Bitcoin even broke below the crucial ZAR 508,450 level. This downward trend in Bitcoin’s value formed a low near ZAR 506,694, opening up a period of uncertainty for the country’s cryptocurrency enthusiasts.

Yet, despite this downturn, the resilient digital asset is currently attempting a tentative recovery wave, triggering a glimmer of cautious optimism among South Africa’s tech-savvy investors.

Recently, there was a minor uptick in Bitcoin’s value, surpassing the ZAR 508,450 resistance level. The price saw a brief surge beyond the 23.6% Fibonacci retracement level. This retracement was calculated from the downward trajectory from the ZAR 531,663 swing high to the recently formed low of ZAR 506,694. However, investors, particularly those in South Africa who are heavily invested in the cryptocurrency market, should keep their guards up as bearish movements are evident near the ZAR 514,942 mark.

As it stands, Bitcoin is trading below the ZAR 519,028 mark and the 100 hourly Simple Moving Average (SMA). Additionally, a short-term rising channel is observed with the formation of support near the ZAR 510,956 mark. This is based on the hourly chart of the BTC/USD pair, which is closely monitored by traders across the globe, including those in the South African market.

A closer examination of the market trends reveals that immediate resistance for Bitcoin lies near the ZAR 514,942 level. This is followed by the first major resistance which is near the ZAR 519,028 level, coinciding with the 100 hourly SMA. Interestingly, this resistance level also aligns with the 50% Fibonacci retracement level of the previous downward move from the swing high of ZAR 531,663 to the swing low of ZAR 506,694.

Investors should also be aware of the subsequent major resistance situated near the ZAR 522,402 level. Should Bitcoin’s price manage to surpass this, there is a potential for the digital currency to ascend towards the substantial ZAR 526,500 resistance zone. An optimistic scenario for South African investors would be a closure above the ZAR 526,500 mark, which could potentially herald a fresh upswing in the value of Bitcoin. In such a case, the price could rise towards the ZAR 532,870 resistance level.

Risk of Further Losses for Bitcoin

Nevertheless, it is crucial to consider potential risk scenarios. If Bitcoin fails to overcome the immediate ZAR 514,942 resistance, the cryptocurrency may continue its downward trajectory. The immediate downside support is near the ZAR 510,525 mark, as well as the channel trend line. If the downward pressure persists, the next significant support level is the recent low of ZAR 506,694.

Should Bitcoin’s value plunge below this, the digital currency might plummet further towards the ZAR 499,775 mark. Following this, additional support is anticipated around the ZAR 494,310 mark. In a bearish scenario, any further losses might necessitate a move towards the concerning ZAR 482,125 level in the near term.

In conclusion, South African investors, along with the global community, are keenly watching these developments. While the potential for recovery is certainly present, the continued presence of bearish trends means investors must proceed with caution. The future of Bitcoin, as always, remains a thrilling yet uncertain ride.

*Currencies in the article have been converted to the South African Rand

Visited 1 times, 1 visit(s) today
Do you have a news tip for Rateweb reporters? Please email us at


Start trading with a free $30 bonus

Trade stocks, forex, commodities, metals and CFDs on stock indices with an internationally licensed and regulated broker. For all clients who open their first real account, XM offers a $30 trading bonus without any initial deposit needed. Learn more about how you can trade over 1000 instruments on the XM MT4 and MT5 platforms from your PC and Mac, or from a variety of mobile devices.


Personal Financial Tools

Below is a list of tools built to assist South Africans to make the best financial decisions:



South Africa’s primary source of financial tools and information

Contact Us


Rateweb strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions.

Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles.