Bitcoin’s price hasn’t changed much this week. The price has been hovering just below the key resistance for a while and now appears to be moving sideways below this resistance. This often leads to violent movements. The only question is: which side? Let’s look at the graphs.
How is BTC doing?
We’ll start this analysis with a quick look at the weekly and daily charts. This is important to analyze the strongest price levels that can influence the price. In the image below they are shown as green zones.
These are price levels that have already led to price changes. First, the upper limit of around $45,000: This is where Bitcoin has encountered resistance recently. The price could not exceed this level because there were too many sellers in this price range.
This is because Bitcoin has historically fallen sharply from this point. If this has happened in the past, it usually indicates that – if the price comes back here – many investors will want to get out. However, there is a possibility that this could still work.
Uptrend intact
Bitcoin is simply in an uptrend and has not yet reached deeper lows. The overall picture looks very good. We can see this best on the daily chart, where each candle represents 24 hours. As you can see, the bottom green zone also becomes lighter here. This is around $37,500 and previously resisted.
However, the coin continued to make higher lows below this level, eventually rising to $45,000. Since then, BTC has not returned to the zone, but this could still happen. The most logical confirmation would be if the coin closed below the red line.
In this case, the currency is hitting a new low, which is not a positive sign. However, if the price remains stable at this level, there still won’t be much danger on the bigger charts.
Is there a big step coming?
However, there is something visible on the 1-hour chart that could indicate that a significant rise or fall could occur soon. Bitcoin stopped its uptrend some time ago and is now moving sideways.
This usually causes the coin to rise or fall sharply at once. This does not mean that it is 100% certain that this will happen, but if it happens here it could be very important for the price increase.
A bearish breakout could push the coin below the red line at $40,400 (which could push it further towards $37,500). But it is also possible that the coin will rise, in which case the price could conquer the large zone of $45,000. This can ensure that we have a very positive and green Christmas.
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.
