Crypto Markets Brace For A Pivotal Week Ahead, As Bitcoin Faces Key Resistance Levels

by | Feb 27, 2023 | Bitcoin, Bitcoin101, News | 0 comments

The price of bitcoin has had a wild trip this year, and it looks like it will end 2021 far higher than it started. The price of a single bitcoin has recently reached a record high of around $49,000, up a staggering 66% from its January low. Although Bitcoin is still the most valuable cryptocurrency, it has dropped over 30% from its November record high of nearly $69,000.

Ethereum, often known as ether, is beginning to catch up. Ethereum’s market cap is $475 billion, making it one of the largest digital currencies. Ethereum is widely used for smart contracts and NFTs, which have caused a sensation in the art and collectibles markets. No one can deny that cryptocurrencies have entered the mainstream. Bitcoin is worth around 92%, or $920 billion, of the total $2.2 trillion market cap of all cryptocurrencies.

When the price of Bitcoin (BTC) climbed above $40,000 for the first time in two weeks, buying activity was high over the past 24 hours. After reaching their most downtrodden levels since March 2020, technical indicators are showing signs of turning upward. At the time of publication, the price of Bitcoin (BTC) was around $40,500, an increase of 10% over the previous day.

Also Read: The Unstoppable Bitcoin: Why This Cryptocurrency is Here to Stay?

A significant move by purchasers above $40,000 is required to halt the price decline that has persisted since the November high of around $69,000. During the previous few months, sellers have been in control, with rallies being halted just below key resistance levels. Staying over $37,000 over the weekend is crucial for Bitcoin’s price to begin a recovery phase. When monthly momentum signals turn negative, it’s unlikely prices will rise by more than a few percent.Even if the relative strength index (RSI) is not high on the daily chart, bitcoin may experience further gains in the near future. The area around $45,000 is the next level of barrier that could put a damper on the current upswing.

Also Read: Bitcoin’s Bear Market May Be Ending

For a key support or resistance level to be considered technically confirmed, the price must close above or below it for at two consecutive days or weeks. Price objectives are more likely to be met when gains or losses are allowed to carry over from one trading session to the next. The crypto market is stabilising after a bumpy week in which major cryptocurrencies extended losses, with bulls and bears engaged in a tug of war over a definitive direction in the face of a hawkish US Federal Reserve and mounting Covid-19 cases.

Might we be looking at milder crypto winters in the future?

When the price of bitcoin first hit $1,000 in early 2017, many investors jumped on board, only to see it soar to just around $20,000 by year’s end. It’s likely that the wild fluctuations in cryptocurrency values will continue. Financial analysts agree that investors must develop a strong stomach for the market’s expected ups and downs in order to succeed. When RSI (14) drops below the 60 mark, it indicates a bearish trend. If BTC/USD breaks out of the channel’s upper border, however, it faces formidable resistance at $48k, $50k, and 52k. Then the crash happened, and by the end of 2018, Bitcoin was trading for roughly $3,500. Obviously, the prices have rebounded, and then some, but getting back to $20,000 took until December 2020.

Also Read: Bitcoin continued its climb and crossed $23000!

The Bitcoin price is falling towards the 9-day and 21-day moving averages after a brief bullish movement above $44,000. The king coin has been fighting to breach over the channel’s upper border for some days. In addition, the coin tried to break out of the channel today, but sellers stepped in and drove the price down to a session low of $42,256. In addition, if the coin falls, the $40,000 level could act as the closest support, allowing it to drop to the $38,000, $36,000, and $34,000 supports.

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