Bitcoin is slowly recovering. With higher lows, the price is gradually approaching resistance levels. With the price there now rejected, can we expect a break?
Not much fluctuation
Prices fluctuated between $35,500 (€31,500) and $39,300 (€34,800) during the week. The volatility is not very large. It's "peanuts" compared to previous weeks, and the 11% percentage difference is not insignificant. Anyone who knows anything about Bitcoin knows that these are normal numbers.
As you can see from the chart above, Bitcoin is currently struggling a bit around the resistance level of $39,000. The above chart is a 4-hour K-line chart of bitcoin showing price rejection. The positive thing is that higher lows and identical highs are now forming.
As a result, there are currently enough sellers to reject the price at resistance around 39,000, but investors are buying higher and higher, creating higher lows. The benefit of this is that buyers may be able to push the price higher above the resistance level. Many bitcoins have been sold here and ended up somewhere. If the longs (buyers) beat the shorts (sellers) at this point, there could be a bigger uptrend.
Between two levels
The danger arises when the price falls below the previous low. This will prove that the higher lows are only temporary bounces. As discussed in the previous analysis, the price remains between two huge levels; $40,000 and $30,000.
When the price fell below $40,000 (€35,500) last May, it rose again to $40,000 and then to $30,000 (€26,500) (see red oval). Given this time Bitcoin was unable to sustain this support. Is this scenario far from unthinkable in the current market?