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The Bitcoin price dropped slightly over the last 24 hours to trade at $43,089.19 at press time.
The Bitcoin Price Reclaims Support
4-hour chart for BTC/USDT (Source: TradingView)
A falling wedge pattern that formed on BTC’s 4-hour chart was validated in the past 48 hours. As a result, the Bitcoin price managed to reclaim the $42,450 support level. Currently, the leading crypto is trading within a short-term consolidation zone between $42,450 and $44,430, and is attempting to overcome the middle level of this consolidation zone.
Should the Bitcoin price close a 4-hour candle above the middle level of this channel, it may attempt to flip the $44,430 resistance level into support. This could then give the crypto the foundation needed to rise to the subsequent barrier at $47,930.
This bullish thesis may be invalidated if the Bitcoin price fails to close a 4-hour candle above the middle level of the current consolidation zone or breaks below $42,450 within the next 24 hours. In this alternative scenario, BTC may drop to the key support level at $40,000.
Bearish Technical Flags to Watch Out For
Traders will want to watch the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators on BTC’s 4-hour chart. The RSI line is attempting to cross below its Simple Moving Average (SMA) line. These two lines intersecting could trigger a major bearish technical flag that will signal bears have gained a brief upper hand against bulls. In addition to this, the MACD line is attempting to break below the MACD Signal line. A cross between these two technical indicators could be a sign that BTC has entered into a short-term bearish cycle.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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