- Bitcoin price is facing resistance from the $53264 level.
- The $45580 and the $42212 are the most critical support levels for Bitcoin price.
Bitcoin (BTC) is the first peer-to-peer digital decentralized currency. It is also used as a decentralized store of value, providing ownership rights as a unit of account and physical asset. Bitcoin is a truly digital global asset; its valuation is constantly moving day by day. However, many business firms considered this asset too volatile to adopt as a serious business.
The Six-Month Returns of Bitcoin Price has Increased by Over 90%
The Bitcoin price has shown an important change in its value by breaking the $26412 resistance level on March 17, 2023. As a result, it created a change of character in the market’s technical terms, which is also responsible for the change of sentiments.
Conversely, the Bitcoin price has moved 57%, forming a decisional demand zone on the $24685 level. This level played an essential role in preventing the price from falling. Afterward, the price took multiple supports on that level and surged 80% upward.
During that rally, the price formed another decisional demand zone on the $38586 level. Subsequently, the buyers started executing their positions, which resulted in a bullish correction till the price reached the decisional demand level of $38586.
On January 22, 2024, the Bitcoin price took support at the $38586 level, leading the current price upward. Additionally, the price is performing just 25% below its all-time high of $68789, which is a positive indication.
Technical Analysis of the Bitcoin Price
The Bitcoin price is moving above the 50-day and the 200-day EMA, reflecting a bullish trend. Recently, the price broke below the 50-day EMA and rebounded initially, making the 50-day EMA strong leading support for the current market price.
Conversely, the price took support on the $38586 level and surged 36% to the $53264 resistance level. Buyers have taken their long positions from the $42212 level, reflecting on the chart followed by the trendline forming above.
The Bitcoin price is trading at the $51756 level at press time. It faces resistance from the $53264 and is looking for a pullback. Furthermore, the price can break that resistance if it makes a proper pullback on the $45580 and $42212 levels.
The relative strength index (RSI) has also indicated a bullish correction. The RSI slope is moving from the overbought region toward the 70-mark upper band. Currently, the RSI is at 72.10 below the signal line.
Conclusion
The Bitcoin price is performing just 25% below its all-time high mark. The EMAs are also preventing the current market price from falling. The price formed multiple bullish candles from the $42212 level, reflecting bulls’ presence at that level. Per the technicals, the price is looking for a correction, which will proceed further to the $60517 resistance level.
Technical Levels
- Resistance Levels: $53264 and $62330
- Support Levels: $38586 and $31774
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading stocks comes with a risk of financial loss.