🚨Bitcoin: Toward a Breakout or a Crash? Watch these levels🚨
🚨 Hello Crypto Banter community 🚨
✔️✔️✔️✔️✔️✔️✔️✔️✔️✔️✔️✔️✔️✔️
After breaking above $26,700 in the second half of March, Bitcoin has turned sideways as bullish momentum wanes.
As we have been watching for the past couple of weeks, Bitcoin has not tried to break out of the consolidation area yet. In yesterday's choppy trading, BTC tested the $29,000 level, but accelerating sales in this area precluded the potential breakout.
In the latest situation, Bitcoin continues to use the Fibonacci extension levels 26,750-28,750 USD as a consolidation area, as measured in the February downtrend. The middle line of this area is being followed as a pivot level for the coin at $27,500 (Fibonacci 1.414). On the other hand, the value of the 8-day EMA in the same area remains valid as dynamic support.
If bitcoin can stay above the center line of the channel before the weekend, we might see fresh moves to break the $28,750 resistance. Technical factors that support this potential attack include the appearance of the daily chart's Stochastic RSI.
After fluctuating in the area estimated at $2,000, the index, which has fallen to the borders of the oversold zone, may turn its direction upwards as long as the price remains above $27,500, which can generate signals that support the buyers. In addition, the short-term and medium-term moving average values show that the uptrend is preserved, with the perfect order from fast to slow, starting from the second half of the month on the daily chart. Additionally, the fact that BTC price is still above these values is another factor supporting the bullish move.
Bitcoin price chart
However, as seen in the chart, the pressure in the $28,000 range is capping the bullish move in BTC.
While there are many positive sentiments in the market that Bitcoin could reach the $30,000 level, a few factors are limiting this move. Among them may be the banking crisis, which supported Bitcoin's 20% rally in March.
The banking crisis, which has become a global problem, has made bitcoin, along with commodities, a safe-haven asset, and bitcoin posted a significant rally for the month. However, the problem of liquidity in banks started with the collapse of two major banks in the United States, two banks that are being used as financial conduits for cryptocurrency companies.
First, the collapse of Silvergate and the subsequent collapse of Silicon Valley's Signature Bank exacerbated the liquidity of cryptocurrency firms in the United States. This situation can be interpreted as a bearish pressure by limiting Bitcoin's rally. In addition, after Binance, the cryptocurrency exchange with the largest trading volume in the market, ended its long-running campaign of commission-free Bitcoin spot transactions, a significant drop in spot BTC transactions was recorded on the platform.
Despite these negative developments, Bitcoin continues to see serious investor demand with the safe haven narrative emerging in previous years. This increased digital currency dominance from 7% this month to 47% in July 2021.
The bearish pressure may increase if Bitcoin's sideways movement continues
Although no bearish signals were received during the horizontal price action, the $26,700 level for BTC will be closely followed again at the end of the day, at which the price might drop below $27,500 in weekend trading.
If BTC starts April below this price, the $25,000 level could be followed as the first stop for a potential correction. Because this area acted as resistance for a brief period in February and March. If sales intensify in this area, we will follow $23,000 as a major support area for BTC.
On the other hand, if there is another move above $28,700 in the next 48 hours, investors can interpret that as a move that will move Bitcoin to the $30,000 range.
What do you think.......
In the comments.......
@HLSPORTRAIT
