Bitcoin Price Analysis: There are some decisions to be made now as price is in a critical zone
- Bitcoin is slightly higher on the session and the price is in the middle of a previous consolidation point.
- The price is in the middle of two key areas and the price just below 8K is important.
BTC/USD daily chart
Technically on this daily chart Bitcoin is still in a downtrend. There is not been a new higher low wave but sometimes the price does move in straight lines in the cryptosphere. On the lower timeframes (4-hr) the waves are more prominent but historically and even looking at the chart below before a change in trend a nice ABC pattern does form. Looking at the chart in more detail now the 55 daily exponential moving average has been taken out. The 200 simple moving average is very close to the 8K zone but the main area of resistance is 7871.60.
It is at that level the price held in the past around October last year and also again the level was used as resistance in the consolidation period between November 2019 and January 2020. Now it seems the price has broken back within that distribution and the top could be tested again. If the price does pull back the red 6,769.84 zone is the main support.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
