Bitcoin (BTC) Breaches Its Three Months Trendline!
Bitcoin is the king of cryptocurrencies with a value gain that inspires new crypto developers to try their luck in developing revolutionary technology. While the timing for new crypto growth has been perfect, BTC maintains roughly 41% dominance over the crypto world in 2022. This dominance has turned Bitcoin into more of a stored value product rather than utilizing its underlined proof of work algorithm-based transactions, which sometimes take hours to get validated.
Bitcoin Price Analysis
Bitcoin price took a steep decline in November 2021, and compared to the value today, BTC has lost close to 45% of its market value as of November 10, 2021. This decline finally took a break at the beginning of the new year, thus creating a stronger trendline for consolidation and challenging the 200 DMA resistance.
Bitcoin, since the beginning of 2022, has made three attempts to retest and breach 200 DMA resistance and failed each time miserably. The failure was linked to a sudden increase in profit-booking by buyers who timed their buying during the latest dip perfectly.
Looking at the present trend, the trend line indicated by dark blue was breached once back during the lack week of February 2022. This breach was reversed the same day, inciting a fresh round of buying. While most investors would be expecting something similar from today’s breach of the trendline curve, one should also consider the declining RSI from the recent resistance posed by the 200 DMA curve.
There seems to be a strong resistance near the psychological level of $51,000. Apart from this level, BTC has another strong support at $33,500. Although the prices are currently trading above this level, breaching an established trendline indicates negative sentiment. So, one of the most important questions amongst traders is that “Is it the right time to enter into the BTC?” You can learn more here before entering into the Bitcoin.
RSI has declined from overbought zones of 80 to mildly positive zones in the 40s, but on the back of strong rejection from higher resistances, buyers could remain silent till BTC falls below its strong support level of $33,000.
There would be a make-or-break situation at this level, but only a lower value can bring a buying sentiment. At present, there seems to be no global issue or condition that could prompt users towards cryptocurrency and blockchain. Only an undervalued price can bring potential buyers near BTC at the current trading price of $39,040.
