- Bitcoin has failed to beat the $48,000 resistance level.
- The coin has now been restricted to ranging between $49,500 and $46,500.
- Consolidation will continue till the price drops to $43,000, where it will bounce up again to test $48,000.
Bitcoin has failed to keep the bullish groove after reaching the $45,000 resistance level, and it is currently not looking likely that the market will get over sooner. This is a major setback for the coin, which had been gliding upwards for more than one month now. The strides of the market had been gradually reduced as the price increased and it has finally come to a halt at the $48,000 significant zone. Currently, the market has fallen into consolidation.
Bitcoin Key Levels
Resistance Levels: $46,500, $48,000, $52,000,
Support Levels: $43,800, $41,000, $37,500
Bitcoin Long Term Trend: Bearish
Bulls had to navigate a tricky level earlier at $41,000. The market had to take a huge pull back to $37,500 where price was able to leap above the key level. Bitcoin, however, started experiencing more sterner opposition at beyond $41,000. At $46,500, price failed initially, but a pullback also drove the market above the level. The same happened when the king coin initially confronted $48,000.
Bulls thought a pullback would also move the coin clear of the $48,000 level, but with the zone extending to $49,500, bulls were eventually caught in a ranging web. Bitcoin has thus been restricted to trading sideways between the $49,500 resistance and the $46,500 support. With the price forced into a ranging movement, the only indications are that the coin may even drop lower. Bitcoin, which glided above the middle line of the Envelope indicator since beginning its rally, is now trading on the downside of the middle line.
Bitcoin Short Term Trend: Ranging
On the 4-hours chart, the market can be seen oscillating along the middle line of the Envelope indicator. Currently, price is trading on the lower side of it. The Relative Strength Index (RSI), though undulating, is trending downwards, and has now plunged to the 43 mark in the selling half of the chart. This shows that though price remains largely at equilibrium, bears seem to have a thing or two extra.
Price will keep ranging till it drops to $43,000, where it will bounce up again to test $48,000.
Also read: Recovery from China Crackdown: Bitcoin’s Hashrate Triples
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