We’re almost in 2024 and we can’t say we’ve had a bad year. Bitcoin rose from $16,600 to unprecedented highs of nearly $45,000 last year. An increase of more than 150%. It seems like a correction is necessary, but so far the price has not fallen below $41,800.
Increase by 150%
To analyze this, let’s first look at the Bitcoin daily chart. Here each candle represents 24 hours and gives us a good overview of the past 365 days. The beginning of 2023 is marked with the blue vertical line. In addition, we see two green zones and two red lines (we will come back to this later).
Since the beginning of this year, the price of Bitcoin has risen – and not just because of anyone. Bitcoin rose more than 150%. Something we haven’t seen since 2020, when the coin rose 300%.
What is notable, however, is that the coin has not reached deeper lows since then. In the chart above, there was no point where we saw catastrophic corrections. This makes it seem increasingly likely that a strong correction will take place.
Bitcoin has now reached the upper green area around $45,000. This level is currently the main resistance, but the price continues to make higher and higher lows. Buyers continue to buy higher so that Bitcoin does not fall below the previous low. This means that BTC has been in a continuous upward trend for a year. But how long?
The price hasn’t dropped below $41,800 yet
To get a better overview of the short-term price, let’s also take a look at the 4-hour chart. Here each candle represents 4 hours. As you can see from the two red lines, Bitcoin is refusing to fall below the previous low. Every time the price drops, there are enough buyers to push the price back down.
Overall, this is a very good signal, especially if it happens below the key resistance (e.g. $45,000). Typically, higher lows lead to a breakout of these types of horizontal zones – as we saw with the green zone around $37,500.
Therefore, Bitcoin is likely to continue this rally for now, but be careful. The currency could fall sharply if it recovers from previous lows. If that doesn’t happen, there’s nothing to worry about – and a $45,000 breakout is becoming increasingly likely – but if $41,800 is broken, things could happen quickly.
In the latter case, it will not be surprising if the coin falls at least to the lower red line and perhaps a little further to the lower green zone. So keep a close eye on these levels! We hope that we don’t have to worry and that 2024 will be as good as this year, but it is always good to be prepared for negative scenarios.
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.
