The year didn’t start badly for Bitcoin, but it didn’t exactly start ‘roaring’ either. The price is up almost 1% today. If we repeat last year, we can expect much more, so our expectations remain high. Let’s look at the graphs.
How is Bitcoin doing?
This time we are not using the weekly chart, but rather the 4-hour chart of BTC. Here each candle represents 4 hours. 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, which costs around $37,500.
We see that Bitcoin has been experiencing resistance there (on the left side of the chart) for a while. Sellers saw an opportunity to capture some of the profits made earlier this year. However, buyers continued to buy higher and eventually pushed the price above this level. This led to a huge reaction: Bitcoin rose to $45,000 in a very short time.
The second green zone is located here. If Bitcoin overcomes this, we will see new highs. Until then, this level remains the biggest resistance for BTC. We want Bitcoin to rise below $45,000, just like it did at $37,500. There, higher lows are formed with equal highs and this usually results in a breakout at the top. So it would be nice if it would work this time.
What can we expect?
However, we cannot accept this completely. There’s one thing that could ruin this standard: a lower minimum. Currently, Bitcoin is facing increasingly steep declines, but if this changes, the price will likely fall for a while.
The important levels at this point are the red line and the lower green zone. The price does not have to enter a bearish scenario immediately (in the long term), but it would be better if BTC manages to maintain higher lows.
We must be careful that Bitcoin does not enter a downward trend. This would be the case if the price not only reached lower lows, but also lower highs. This usually leads to a further decline over a longer period and we obviously do not want to see such a scenario. Therefore, it would be better if the price continues the current trend.
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.
