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BTC Price Analysis: Bitcoin Revives Nearly 55% Off Lows, But It May Face Rejection At these Levels

BTC Price Analysis: Bitcoin Revives Nearly 55% Off Lows, But It May Face Rejection At these Levels

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Bitcoin (BTC) price has finally broke out of its 2 month range that bears has continuously kept price within. This is a great sign for the overall crypto market as the majority of coins have followed BTC’s lead and have revived strong off their lows. But, before we can say the market is in the complete clear, BTC still has important marks to break & hold. Many anticipate new ATH this year but there is also a bunch of others who believe this a dead cat bounce for the markets, setting the stage for a drop to low $20,000s.

BTC held the $30,000 support multiple times as bulls were always there to gobble prices back up. This provided a launchpad for BTC to rise $15,000 in nearly 3 weeks. At the time of writing, BTC is getting rejected at a long term trend line that has held prices down since the ATH was set. BTC must clear over this to technically be in a complete uptrend.

Along with this trend lies the 200 Day MA. Price has been stuck under this MA for over 2 months & bulls must clear this to be in a safe state. There is also a major resistance of $44,700 that must clear along with the two other marks.

Bitcoin Price Analysis: BTC/USDT 1 Day Chart

If BTC fails to clear over these 3 important marks, price will retrace back to minor support of $42,500. This seems like the likely scenario as of now. If this minor support fails to hold BTC, further downside will occur once price breaks below the short term trend line. This will confirm a slight bearish trend is in place & BTC will likely go down to retest somewhere within its major support zone of $37,800-$40,200.

While looking at the Relative Strength Index, we can see that strength peaked into the overbought territory 2 different times the last week. Unfortunately, while BTC just hit near 45k, the strength printed a lower high than its previous push to $42.5k.
This is called a bearish divergence and they are highly accurate within the crypto space. The Stochastic RSI did the exact same thing as it printed a lower high than before. Both indicators have a bearish divergence & this will likely cause a retrace to occur.

BTC Price Intraday Analysis

Spot rate: $44,000
Trend: Bullish
Volatility: High
Support: $42,500
Resistance: $44,700

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

Domenic CoinGape

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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