Bitcoin Price at Crucial Crossroads: Bull Trap or Tech Correction?

Bitcoin Price at Crucial Crossroads: Bull Trap or Tech Correction?


670 Listen to this article Bitcoin, the world’s leading cryptocurrency, has found itself at a critical crossroads in recent trading […]

Latest News

Listen to this article

Bitcoin, the world’s leading cryptocurrency, has found itself at a critical crossroads in recent trading sessions. Traders and investors are closely monitoring whether it’s entering a bull trap or undergoing a necessary technical correction.

Failed Attempt to Surpass $36,000

Bitcoin’s price initially rallied, attempting to break above the key resistance level of $36,000. However, this endeavor encountered resistance, raising concerns among market participants. The price failed to test the $36,200 resistance zone, and this setback marked the beginning of a downside correction.

Key Price Levels and Indicators

The latest trading data reveals several key price levels and technical indicators that are influencing Bitcoin’s near-term direction:

  • Current Price and Moving Averages: As of the latest data, Bitcoin is trading near $34,700, close to the 100-hourly Simple Moving Average (SMA).
  • Crucial Bullish Trend Line: On the hourly chart of the BTC/USD pair (data sourced from Kraken), there is a significant bullish trend line forming with support near $34,300.
  • Support at $34,000: To ignite a fresh upward move, Bitcoin must maintain support above the $34,000 level. Falling below this support could signify a more extended correction.

A Closer Look at the Correction

Following the unsuccessful attempt to breach $36,000, Bitcoin’s price dipped below both the $35,000 and $35,500 levels. The downward movement even resulted in a brief drop below $34,500, crossing the 100-hourly SMA. The cryptocurrency’s price reached a low point at approximately $34,350 before initiating a period of consolidation.

Read Also:  BNB and SOL Cryptos Thrive Amid Bitcoin's Soaring Momentum

Fibonacci Retracement Analysis

Analysts are closely observing the 23.6% Fibonacci retracement level of the recent decline, which extends from the peak at $35,945 to the low at $34,350. This retracement level is crucial, as it could provide insights into potential support or resistance zones.

Potential Upside Scenarios

Bitcoin’s price faces a series of resistance levels if it seeks to recover:

  • Immediate Resistance at $35,750: The closest obstacle for Bitcoin’s upward movement is the $35,750 level.
  • $35,150 and 50% Fib Retracement: The next significant resistance level is likely around $35,150 or the 50% Fibonacci retracement level of the recent decline. A decisive break above $35,150 could pave the way for Bitcoin to challenge the $36,000 resistance.
  • Breaking the $36,000 Mark: Beyond $35,150, the next major resistance is at $36,000. A clear move above this level could set the stage for a bullish run, with the potential for Bitcoin to target $36,200, and even reach as high as $37,000. A sustained rally might even propel BTC towards the $37,500 level.

Downside Risks

However, there are downside risks if Bitcoin fails to overcome the $35,150 resistance zone. In such a scenario:

  • Initial Support at $34,350: The first level of support is near the $34,350 low, followed by the established bullish trend line around $34,300.
  • Critical Support at $34,000: A move below $34,000 poses a significant risk of further declines. If this occurs, Bitcoin could potentially descend towards the $33,200 level in the near term.

Technical Indicators

Several key technical indicators offer insights into Bitcoin’s current situation:

  • Hourly MACD: The Moving Average Convergence Divergence (MACD) indicator is currently showing a loss of momentum in the bearish zone, indicating a degree of weakness in the current trend.
  • Hourly RSI (Relative Strength Index): The RSI for BTC/USD is now positioned below the 50 level, which suggests a relative weakening of the cryptocurrency’s strength in the short term.
Read Also:  BTC and ETH Face Downtrend | FURR Token Surges After Presale

Key Support and Resistance Levels

  • Major Support Levels: The critical support levels to monitor are at $34,300 and $34,000.
  • Major Resistance Levels: Key resistance levels to watch include $34,750, $35,150, and the crucial $36,000 mark. The ability to breach these resistance levels could significantly impact Bitcoin’s near-term trajectory.

As Bitcoin faces this pivotal moment, traders and investors are keenly observing price movements and technical indicators to determine whether it will continue its upward trajectory or undergo a more extensive correction. The outcome of this decision point is eagerly anticipated within the cryptocurrency community.

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and LinkedIn.

Top Recommended Articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

Would love your thoughts, please comment.x
Scroll to Top
Bitcoin ETFs Surge as Investors Seek Exposure Coinbase, Andreessen Horowitz, and Ripple have joined forces to fund a new crypto DMM Bitcoin Hit by $305M Hack Ripple Releases 1 Billion XRP Tokens What to Expect from Bitcoin’s Price Rally in H2 2024 Trump’s MAGA Coin Soars 7% While Biden Parody Sinks Amid Ex-President’s Trial — NFTs Hold Steady Analyst Warns About Dogecoin Decline CME Denies Solana Futures Plans Amid Growing Rumors Can PEPE flip Polygon? Market cap race heats up! Why Bitcoin Price Is Down Today? Cristiano Ronaldo Launches 4th NFT Collection on Binance Amid $1B Lawsuit Coinbase Alleges SEC Dodging Howey Test in New Appeal Ethereum ETFs Granted Official Approval by SEC Crypto Whale Splurges $10.4 Million on Meme Coin PEPE SOL Price Nearing Support as On-Chain Activity Dips for Solana Penguiana Meme Coin’s Presale Achieves Success, Raising 290 SOL Solana to Bitcoin Bridge, Zeus Network, Set for Debut in Q3 2024 DeFi Lending Leader Aave Unveils V4 Protocol Overhaul MicroStrategy (MSTR) Incurs Losses in Q1 After Digital Asset Impairment Takes Toll Upbit Emerges as Top Five Crypto Exchange, Posing Challenge to Binance, Coinbase