$70K: Repeated Resistance
Updated
The recent 5% drop to $65,915 after yet another rejection at the $70,000 prize zone is telling of the market's current sentiment and the strength of this resistance area. The rejection, not an isolated event, marks a continuing trend this month, indicating that the $70,000 level is a significant psychological and technical barrier.
As I've mentioned before, Bitcoin is not looking good, in short term analysis data:
The descending channel of course wasn't strong enough to hold the price inside, but the resistance pressure pushing down on the price is also pushing the risk higher.
However, in long-term perspectives, it's not looking as weak:
Let's stick to the current chart for now:
The Bollinger Bands show that the price has retreated from the upper band, suggesting that we might see some stabilization or even a potential pushback from buyers around the lower band. Notably, the current price hovers above the Simple Moving Average (SMA), which often acts as a dynamic support level, suggesting that there's still underlying bullish sentiment in the mid-term.
However, the Moving Average Convergence Divergence (MACD) presents a bearish crossover, with the MACD line below the signal line and a growing negative histogram, pointing towards a potential increase in downward momentum. This, coupled with the Stochastic Oscillator dipping below the 20 level, indicates an oversold market condition in the short term, which sometimes precedes a reversal if buyers perceive it as an opportunity to buy at lower prices.
The Relative Strength Index (RSI), currently near the middle range, adds to the mixed signals, as it neither confirms an overbought nor an oversold condition but reflects a market in flux.
The story here is one of tension between an apparent bullish trend on the larger weekly and monthly frames and bearish signals on the shorter timeframes. These conflicting signals create a complex environment for traders. The immediate future of Bitcoin's price movement hinges on whether the bulls can gather enough momentum to solidify a base above the current support levels and orchestrate a sustained push above the $70,000 resistance, or if the bears will continue to exert pressure leading to further tests of the support trends.
Market participants will be closely monitoring global economic indicators, industry news, and changes in market dynamics for clues on Bitcoin's next big move. The key to navigating this market will be to watch for a shift in the indicators that could signal a change in the current trend, be it bullish or bearish. The coming days and weeks will be critical, as they will likely either confirm the current resistance level as a top for now or invalidate it with a strong bullish breakout.
As I've mentioned before, Bitcoin is not looking good, in short term analysis data:
The descending channel of course wasn't strong enough to hold the price inside, but the resistance pressure pushing down on the price is also pushing the risk higher.
However, in long-term perspectives, it's not looking as weak:
Let's stick to the current chart for now:
The Bollinger Bands show that the price has retreated from the upper band, suggesting that we might see some stabilization or even a potential pushback from buyers around the lower band. Notably, the current price hovers above the Simple Moving Average (SMA), which often acts as a dynamic support level, suggesting that there's still underlying bullish sentiment in the mid-term.
However, the Moving Average Convergence Divergence (MACD) presents a bearish crossover, with the MACD line below the signal line and a growing negative histogram, pointing towards a potential increase in downward momentum. This, coupled with the Stochastic Oscillator dipping below the 20 level, indicates an oversold market condition in the short term, which sometimes precedes a reversal if buyers perceive it as an opportunity to buy at lower prices.
The Relative Strength Index (RSI), currently near the middle range, adds to the mixed signals, as it neither confirms an overbought nor an oversold condition but reflects a market in flux.
The story here is one of tension between an apparent bullish trend on the larger weekly and monthly frames and bearish signals on the shorter timeframes. These conflicting signals create a complex environment for traders. The immediate future of Bitcoin's price movement hinges on whether the bulls can gather enough momentum to solidify a base above the current support levels and orchestrate a sustained push above the $70,000 resistance, or if the bears will continue to exert pressure leading to further tests of the support trends.
Market participants will be closely monitoring global economic indicators, industry news, and changes in market dynamics for clues on Bitcoin's next big move. The key to navigating this market will be to watch for a shift in the indicators that could signal a change in the current trend, be it bullish or bearish. The coming days and weeks will be critical, as they will likely either confirm the current resistance level as a top for now or invalidate it with a strong bullish breakout.
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Got pushed up by support, on its way to the upper band:
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