As we unravel the battle between the Bulls and the Bears, we highlight key price levels that every trader should keep an eye on. From the sideways consolidation to the potential directions Bitcoin could go, we provide a detailed overview of what’s going on and what may be at stake for the near future.
Bitcoin 1 hour chart
We start our analysis by looking at the current movements in the Bitcoin market in the shorter term. We focus specifically on the 200 MAs. Since April 1, we have fallen below these MAs, meaning they now act as trend resistance. This means that any recent recovery attempt has been met with resistance from these moving averages.
Directly above these MAs is a key price level around $69,000. This level has functioned as both a resistance area and a support area several times since March. At the moment, the MAs together with this price level form a significant resistance that we will have to overcome in the coming days or even weeks.
As we discussed in our previous update, our approach remains unchanged. To resume the longer-term uptrend visible on daily and weekly charts, we must first break through these shorter-term resistance levels. Until this happens, there isn’t much point in speculating about reaching new heights any time soon.
However, the current situation is not exclusively negative. The strong upward trend we saw a few weeks ago has given way to a more sideways movement. Within this sideways trend, we note that the lows have recently been slightly higher, while the highs have actually become lower. This indicates consolidation within the market, a cooling-off period.
If we manage to form a new higher top, it will be above the 200 MAs, as well as above the area around $69,000. However, should a new lower bottom form, it is likely to lead to a retest of the price level around $63,000.
Bitcoin 4 hour chart
If we focus a little more broadly and look at the medium-term trends on the 4-hour chart, we see that the 200 MAs have served as perfect trend support for the time being. They have held up the last three times they have been tested, indicating their important role.
What is striking is that the lows along these MAs are increasingly higher, while the MAs themselves begin to flatten out and move more and more horizontally. This fits with the sideways trend we have been seeing lately. The lack of new higher highs highlights this period of sideways consolidation we are currently in.
One thing is certain, sooner or later the current sideways trend will turn in a bullish (upward) or bearish (downward) direction. This means that we will either see a continuation of the strong uptrend of the past few months, or we will experience a temporary downtrend.
Important price levels to keep an eye on in the coming period are the 200 MAs (also on the 1-hour chart), the area around $69,000 just above us, and the area around $63,000 below us. The area around $63,000 is particularly important as a support point should we unexpectedly end up there soon. If this level is broken, we will only find the next significant support level just above $50,000.
However, at this point it doesn’t make sense to speculate too much about these scenarios. Let’s first wait and see which direction we break out of the current sideways consolidation phase, and plan further from there.
Nice weekend!
The Bitcoin Webshop of the Netherlands and Belgium
Discover the ultimate Bitcoin experience in the Bitcoin Webshop of the Netherlands and Belgium, your one-stop-shop for everything related to Bitcoin! From unique Bitcoin coins and daily accessories that radiate your love for this digital revolution, to exclusive items such as Bitcoin 100K CavaBelgian Bitcoin Chocolateand the best Bitcoin Books. Celebrate the Bitcoin Bullrun 2024 with us and dive into a world full of innovation and freedom. Don’t miss our bestsellers and become part of the future today Bitcoin Debut!
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-update-korte-termijn-weerstand-en-lange-termijn-kansen
