Bitcoin Still To Meet Key Resistances
While Bitcoin (BTC) has seemingly broken clean past $4,000, as it failed to pullback under that level during Friday night’s brief sell-off, analysts are sure that the cryptocurrency still has key resistances to meet, surpass, and hold above.
In a recent TradingView post, Magic Poop Cannon, a popular analyst, remarked that while BTC broke clean past a long-standing “powerful” resistance, which depressed Bitcoin heavily at $10,000, $8,500, and $6,500 and the 150-day moving average simultaneously, this surge was done on relatively light volume. This shows that “market participants aren’t willing to jump into crypto yet,” meaning that a pullback under the level, currently sitting just shy of $4,000, is all the more likely. Even more importantly, Bitcoin failed to hold above the upper range of an ongoing triangle channel, which Magic claims signals “indecision” for traders. Thus, while $4,000 has been passed, it would be fair to claim that the cryptocurrency market isn’t out of the woods just yet.
Magic writes that until key resistance levels at $4,200 to $4,400 are taken out, as they have pinned Bitcoin down during its previous attempts to breakout, the market will chop sideways, take a breather, and then potentially return under the auspicious $4,000 level.
Murad Mahmudov echoed these thoughts in a recent apperance on BlockTV. Although he briefly acknowledged the move above $4,000, he claimed that the much more important level to watch is somewhere between $4,200 and $4,400. He cited an indicator that he created, Real Value, which shows that the average investor currently has a Bitcoin cost basis of $4,300, thus making it a key level to watch.
As reported by Ethereum World News on Saturday, the two aforementioned are far from the first to have drawn attention to the importance of the mentioned Bitcoin price points. Alex Krüger wrote yesterday that according to a simple matter of historical market movement patterns, a move past $4,200 will mark the end of crypto’s ongoing bear trend.
With BTC currently failing to keep up the bullish momentum, some are wary that higher highs in this ongoing uptick are unlikely.
Keep Your Eyes On The Crypto Road
The stage may be set for the cryptocurrency market to stumble from here, but many are sure that Bitcoin is entering a realm of ‘make or break’. Trading Room recently drew attention to Bitcoin’s three-month chart, often used by long-term investors, to draw attention to the seven exponential moving average (7 EMA).
Historically, the 7 EMA acted as a base for the cryptocurrency in its bull cycles, and as a level of resistance during its downturns. With this line currently looking to bottom out, resembling a trend seen at the bottom of 2014-2016’s cycle, the analyst seems to be implying that with the three-month candle closing tomorrow, a recovery could begin.
Title Image Courtesy of Andre Francois Mckenzie Via Unsplash