Over the past few days, the chart of the largest cryptocurrency has not shown much noticeable price action. The price is still moving sideways and getting ready to pick a direction. There are signs that the price could fall, such as the double top on the daily chart and the fact that we are seeing decreasing volume in an upward movement (fewer and fewer people are buying bitcoin at an increasingly higher price).
Still, it’s important to consider both sides and discuss the possibility of the price continuing to rise. In today’s analysis, we discuss this scenario and focus on the key price levels that will be critical going forward.
Which resistors are important?
To continue the uptrend, the red resistance box must be broken. As you can see in the chart below, the price has been hovering around this price level for over two weeks now. However, it is not possible to go through the chest. The resistance is very strong and the price is ready to pull back and test the $21,500 (green line) support.
A decline seems most likely. If you look at Twitter, you quickly see that the majority is also convinced of this direction. If we’ve learned anything lately, it’s that price often surprises by going in the most unexpected direction. Will that be the case now?
If there is an increase, the red box is tested again. If there is another rejection, the price will probably still start a downtrend. Breaking the resistance on multiple timeframes could allow the price to move higher and test the resistance around $28,650.
Why in multiple periods?
Assuming price breaks resistance on the 1 hour chart, then moves down and the 4 hour candle closes below that resistance, breaking resistance was just a false alarm known as a “fakeout”. For this reason, it is good not to talk about a break until it is confirmed at least on the 4-hour chart and preferably also on the daily chart.
Which indicator will bitcoin reach if it continues to rise?
With a price surge of $2,000, bitcoin’s price will hit a key indicator. This is the 200 week SMA. This is an indicator that summarizes and averages the last 200 weekly prices. This creates a line.
This line played an important role in the history of the most famous cryptocurrency. In the past, the price regularly received great support from this line. As you may know, major support usually turns into major resistance when the price drops below the price level. Therefore, if Bitcoin falls below this indicator, it will certainly not be an easy task to overcome it.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
