BTC price rose about 1% on Wednesday and was trading at $77,500, and has finally entered a bullish phase. However, with so much resistance above, can the bulls start a real turnaround or will this rally be too little, too late?
BTC price is finally starting to rise – but how far will it go?
source: TradingView
The 4-hour chart above tells us that Bitcoin price in dollars It finally started to rise after two days of lateral consolidation. However, as it turns out, the price needs to break the horizontal resistance level of $77,400 and return to the next level. Down channel. Until then, the bulls probably won’t start breathing easier until the price remains above the $78,400 resistance level.
With the US-Iran conflict potentially intensifying again, this will likely have a negative impact on the US stock market and similarly Bitcoin. On the other hand, if an agreement is reached, a rally and exit from the bear flag is certainly still a possibility.
Two main levels of interest
source: TradingView
The daily chart shows that there are currently two main levels of interest in Bitcoin. To the upside, the $80,000 horizontal level was breached (also… 200 day simple moving average) would put the bulls firmly back in the driver’s seat. Conversely, a break below the key horizontal support level at $76,000 could help pull back the trend Bitcoin price in dollars Back to the bear market.
At the bottom of the chart The Stochastic RSI lines have bottomed and are crossing to the upside. Good news for bulls? Yes, probably, although if we look to the left of the previous bear flag, the indicator lines streaked along the lower end of its range for some time until the bottom was finally reached. Could the same thing happen again?
Strong rejection so far on the 2-week chart
source: TradingView
Looking at the two-week time frame, the horizontal resistance appears to be changing. As we can see here, the main resistance level is located at around $82,350.
While the bulls will be happy to see the RSI lines rising and indicating bullish price momentum, the actual situation for the bulls here does not look good. So far, the current two-week candle is being strongly rejected from the major resistance. Unless there is a major turnaround in the next four days, which would be an upward swing over $5,000, the bulls are staring down the barrel of more bearish price action that could take $BTC back to $66,000.
Once again, investors will need to keep their eyes peeled Bitcoin price in dollars Going into lockdown on Sunday. The price direction over the next few weeks, and even months, could depend on the outcome.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
