The Bitcoin price dropped more than 1% over the past 24 hours to trade at $42,192.47 at press time.
The Bitcoin Price Falls Out of a Bullish Channel
4-hour chart for BTC/USDT (Source: TradingView)
Over the last two days, the Bitcoin price fell from its positive trend in the medium term, breaking below the crucial support level of $42,450. Should Bitcoin not manage to recover this level within the next day, there’s a risk it could further decline to the next support at $40,000 soon. However, traders and investors should be aware that a bullish pattern, known as a falling wedge, has emerged on the 4-hour chart of the cryptocurrency. This pattern often suggests a potential upward movement in price.
A significant sign of recovery would be the Bitcoin price closing a 4-hour candlestick above $42,450, which could then set the stage for a rise towards the resistance at $44,430. Surpassing this level might pave the way for Bitcoin to potentially reach up to $47,390 over the next week.
Despite these prospects, technical indicators hint at a possible further decrease in Bitcoin’s price. The Moving Average Convergence Divergence (MACD) shows a bearish divergence as it moves below the signal line, indicating a strengthening of the bearish trend. Furthermore, the Relative Strength Index (RSI) lies below its Simple Moving Average (SMA) line, signifying that the bearish momentum outweighs buying pressure.
However, a silver lining is observed with the RSI on the 4-hour chart trending upwards and nearing oversold conditions, suggesting that the Bitcoin price has more room to grow than to fall. This could be seen as a buying opportunity by investors, potentially leading to a short-term increase in Bitcoin’s price.
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.
コメント