Bitcoin closed in the red last week, but seems to be correcting again this week. The coin rose above $44,000 again last week, approaching resistance where it was previously rejected. Let’s look at the graphs.
How is BTC doing?
This analysis starts with a look at the weekly chart. Here the main price levels are shown as green zones. These are places that have often influenced the price in the past. The expectation is that if the price returns here, the price will go in a different direction.
These two green zones cost approximately $37,500 (lower green zone) and $45,000 (upper zone). Bitcoin’s price is currently in the middle and it doesn’t seem like the coin is necessarily choosing a side yet.
After rejection in the upper green zone, which currently offers a lot of resistance, the coin remains trapped between these two levels. A higher high has not yet been set, so it is uncertain whether Bitcoin will be able to cross the $45,000 zone.
Only if the coin reaches higher highs – and continues to reach higher lows – is it likely that BTC will be able to cross the $45,000 mark. Until then, things will remain exciting and the danger of a recession is becoming increasingly real.
Will BTC stay between these two levels?
It makes sense that the coin will continue to fall if it falls below the previous low. This is indicated by the red line, although its origin is not visible on the weekly chart. So let’s take a quick look at the 4-hour chart, where each candle represents 4 hours.
Therefore, a further decline to $37,500 is very likely if Bitcoin manages to fall below the $40,400 mark. Until then, the coin must continue to move between the upper zone and the red line. They offer resistance and support.
If Bitcoin rises above its previous high ($45,000), we can likely expect a new green phase. In this case, the current resistance has been broken and that is a good sign.
To do this, the price must close above this green zone as this proves that all sell orders have been executed around this price. In this case, the price could start moving towards the next resistance – with or without a small correction in this green zone.
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.
