Bitcoin continued to suspend bullish to a sideway trend. Although it currently looks weak following a 1% loss in the past hour. It appeared to be gathering momentum for a big price movement.
Since the price fell from $44,700 earlier this month, Bitcoin’s price has been moving sideways due to an equilibrium in demand and supply. Its dominance against altcoins dropped to 49.9% but where it is headed next is yet unknown.
However, the momentum may appear slowed down on the current daily chart, but its bullish trajectory remains valid from a short-term perspective. There’s still hope for a continuation if the demand outweighs the supply.
Meanwhile, the price is trapped between the range of $40,200 and $44,700, which has served as a support and resistance level for almost four weeks now. A break from this range would determine the next direction of the market.
Should a breakup occur, Bitcoin could initiate more buys and advance rally towards $48,000 – the April 2022 high. If that resulted in a false breakout, the price could roll back into the trading range. On the other hand, a breakdown could activate a big drop in the daily chart.
As it stands now, there are no major signs of movement in the market. Bitcoin will continue to trade in a range until the price completely breaks away.
Bitcoin’s Key Levels To Watch
Aside from the $44,000, Bitcoin has further retested the $43,000 level as resistance today. If the price recovers and pushes through these resistance levels, $44,700 would be the next resistance to watch before breaking higher to $46,000 and $47,000.
Towards the downside, it may encounter resistance at $41,000 and $40,200 before breaking down to $39,000 and potentially $38,500.
Key Resistance Levels: $43,000, $44,000, $44,700
Key Support Levels: $41,000, $40,200, $39,000
- Spot Price: $42,000
- Trend: Neutral-Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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