Bitcoin is likely to close in the green this week. The coin is already 10% above Monday’s price and has only one day left to go. However, there is resistance that could push the price slightly lower if BTC reaches $45,500. Let’s look at the graphs.
25% increase due to resistance
First, let’s take the 4-hour chart of BTC. Here each candle represents 4 hours, so we can see just enough to analyze the price. The image below shows two important price levels that influence the price. They are shown as green zones and we’ll start with the bottom zone ($37,500).
We see that Bitcoin has been experiencing resistance for a while. And as I’ve mentioned in other analyses, it made sense that the price would encounter some resistance at this price. It was a level at which Bitcoin fell significantly in 2021. This kept this level very interesting.
It is common for the price to encounter resistance at a point where sell orders hold, causing the price to move lower again. This was the case this time too, but as buyers bought higher and higher, the price continued to reach higher lows (indicated by the blue arcs).
When the coin broke out of the green and retested the zone, it made more sense for the coin to continue rising. There are now buyers for about $37,500 instead of sellers. This resulted in a miraculous sequel where the price rose by more than 25%.
The next point of resistance
It is good to look for the next resistance level, but to illustrate this it is best to look at the daily chart. This allows us to analyze price developments in more detail.
The green resistance is around $45,500 and has the same origin as the lower green zone. Bitcoin has fallen sharply from this price in 2022, so there will likely be many sellers near this price again.
Importantly, the coin does not make a lower low until it reaches $45,500. This would be bad for the price action as it would cause a downtrend. It would be better if the price continued the current trend. If the coin continues to make higher lows, we can expect the same continuation of the lower green area.
Source: BtcDirect
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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.
