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Technical analysis is a crucial indicator that investors, especially those trading in the cryptocurrency market, need to constantly monitor, particularly for Bitcoin, which is currently trading at $37,699. So, what does technical analysis tell us? Let's take a detailed look at the chart analysis and important support and resistance levels.
Bitcoin Daily Chart Analysis:
The first notable pattern on the Bitcoin daily chart is the ascending channel formed since October 23. This pattern structure only broke resistance during the surge on November 9, but Bitcoin's price did not close the daily candle above the region from October 10. After the drop on November 21, the horizontal support of the 7-day moving average (blue line) may provide significant momentum for future prices.
The most crucial support levels on the daily chart for Bitcoin are $37,256, $36,857, and $36,352. If the daily closing price is below these support levels, it may lead to Bitcoin's price touching the support line. However, a daily closing price below $36,000 could result in Bitcoin losing its upward momentum.
The most important resistance levels to consider on the daily chart for Bitcoin are $38,007, $38,722, and $39,198. In a bear market, Bitcoin struggles to surpass these levels closely monitored by analysts, causing a loss of upward momentum. Currently, failing to close the daily above $38,000 poses a significant risk to Bitcoin's price.
Bitcoin Two-Hour Chart Analysis:
The two-hour chart for Bitcoin also shows the formation of an ascending channel, similar to the daily chart. However, the surge on November 16, accompanied by a breakthrough of resistance levels and the fact that the price retested without success, indicates that this breakthrough was a bull trap. Another important point is that Bitcoin's price is consolidating between $37,724 and $37,387 in the recent candles.
The most crucial support levels on the two-hour chart for Bitcoin are $37,387, $36,934, and $36,377. Specifically, if the closing price is below the intersection level of the 200-period exponential moving average (EMA) (red line) and $36,934, it will lead to Bitcoin losing momentum in the short term.
The most important resistance levels to consider on the two-hour chart for Bitcoin are $37,724, $37,921, and $38,270. Specifically, if the closing price is above the full-formed resistance line intersecting with $38,270, it will provide significant momentum for Bitcoin's price. |
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Post time 4-12-2023 08:23:21