Bitcoin jumped 10% yesterday and broke through a key resistance to reach a new milestone. The price has dropped slightly in the past but remained strong on the daily outlook with a current dominance of 53.3% against altcoins.
Following a sudden crash to the $40,500 level last week, Bitcoin reacted strongly, climbed back above the $42,500 level, and remained indecisive for the rest of the week.
This week came with a surge and the trading volatility expanded to the upside, leading to a break out from a four-week accumulation phase to a new multi-month high of $47,247 yesterday. It marked a resistance there and retraced briefly today.
Notwithstanding, Bitcoin is still looking super bullish across the higher timeframe. A further break will position the leading crypto for more growth.
Aside from serving as a retracement level since last December, the $40,000 level has not just acted as a crucial support for Bitcoin, but also instrumental in the recent recovery and breakup.
However, it is essential to note that the price is due for a correction as it appeared to have reached an overbought zone from a short-term perspective. A dip below the crucial support could activate a correction towards the ascending trendline before resuming bullish.
While the price continues to increase, the daily volume indicator has remained extremely flat for the past ten months. A bearish divergence might be lurking around the corner.
Bitcoin’s Key Levels To Watch
Flipping through the $47,248 resistance in the next surge, the potential resistance level to watch for an increase would be $47,500 and $48,172 – all marked as March and April 2022 high.
Right now, the $45,900 level is the closest level for a pullback. If the level fails, Bitcoin may navigate the $44,700 level or even $42,447 for a rebound. The last defence line for the bulls would be $40,254 if the price dips.
Key Resistance Levels: $47,248, $47,500, $48,172
Key Support Levels: $44,700, $42,547, $40,254
- Spot Price: $46,492
- Trend: Bullish
- Volatility: High
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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