Bitcoin saw its price pull back after initially moving higher and surpassing the resistance at $80,000. However, eventually, the price reached a major resistance level at $82,000 and then fell again. Now, it seems that Bitcoin price is stuck in a zone Lateral movement This threatens to be the end of the recovery. However, this may not be the end of the uptrend being marked on the chart.
Why can the price of Bitcoin recover so quickly?
In a recent post, a pseudonymous cryptocurrency analyst named HAMED_AZ Highlight Three clear signals could show that Bitcoin price is on the verge of a bullish reversal. The first is that the cryptocurrency has now entered a major demand area.
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This demand zone is between $70,000 and $73,000, showing the levels where the Bitcoin price has had the most support recently. According to the cryptocurrency analyst, this demand zone was previously a strong reaction zone It can continue in the same way.
Next in line is the uptrend line that appeared on the Bitcoin chart. This uptrend line has held up recently and is continuing Previous uptrend support. If this trend continues, the price of Bitcoin will likely continue to rise.
Then, last but not least, on the list is the fact that the 50% Fibonacci retracement. With the 0.5 Fibonacci level near $71,302, this means… Bitcoin price It does not descend towards the general area of this level, which creates an alignment.
Where is the price headed?
After analysis, the price of Bitcoin can be… Consider another bullish rebound almost. However, just like before, there is still plenty of resistance waiting at the $82,000 level, meaning this is the level to beat if the bulls want to maintain the uptrend.
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For a bearish case, Bitcoin price will need to breakout first Below the rising trend line. This puts it below $71,000 at the current level, and if that happens, the cryptocurrency analyst says it would open the door for a deeper correction for the cryptocurrency.
Featured image from Dall.E, chart from TradingView.com
