The price of Bitcoin has been falling for the past few days. As I wrote before, there were several reasons to expect this decline. For example, the volume indicator gave bearish signals, the value of the dollar rose sharply and the chart of the largest cryptocurrency showed a double top.
With the Bitcoin chart showing red candles, let’s focus on the support levels the price has reached and will reach. In this analysis, I will start with the main horizontal support levels as they are the most well known and important.
In addition to horizontal support levels, we will also discuss the bull market support band. This indicator is very important in determining whether Bitcoin is in a bull market or a bear market. In a bull market, it is important to hold this indicator as support. In bearish times, it often acts as the main resistance.
The two horizontal supports
The chart below shows that bitcoin price has tested a crucial support around $21,500 over the past few days. This level has proved to be very important in recent months. Staying above this support could move higher. However, if we go below this price level, the price may move back to the lower green line.
The lower green line has a lot more price action than the other support level. Because of this, the price is sure to find a lot of support here if it really matters. At this point, there is certainly no reason to believe that the price will drop any further.
Where does the bull market support band provide support?
As mentioned earlier, the Bull Market Support Band (BMSB) is an important indicator for determining the Bitcoin trend. When the bitcoin price is above this indicator, it indicates a bull market. On the other hand, if the price is below the BMSB, it may indicate a bear market.
In the chart above, we see the bull market support band (BMSB). This indicator is near the same price level as the main horizontal support at $18,700, which is a positive sign. This gives another reason why the bitcoin price is likely to rise at these levels.
A crucial factor, however, is Bitcoin’s weekly candle. It is important that it closes above the BMSB to confirm the uptrend and indicate that Bitcoin’s rise is still ongoing. If we see a close below the BMSB, it could be a bearish signal and the bitcoin price could fall further. Therefore, it is important to monitor Bitcoin’s price movements and use the bull market support band as one of many indicators to understand the market trend.
Editor wanted
Did you enjoy reading these articles and want to contribute to our content? We are looking for a new editor-in-chief with a deft pen and in-depth knowledge of the cryptocurrency market. View our vacancies here and respond immediately!
Source: Btc Direct
Source link
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.
