Bitcoin’s Technical Analysis: Corrective Phase with Support at 100-day MA
Bitcoin’s price has been relatively stagnant, struggling to break through the $30K resistance level. However, the current phase is seen as a corrective movement, with minor rejections and strong support at the 100-day moving average (MA).
The Daily Chart
– The daily chart reveals a gradual retracement towards the 100-day MA at $28.5K since the rejection at $30K.
– The 100-day MA has acted as a solid support, preventing further declines for several months.
– A drop below the 100-day MA may indicate the sellers’ shift towards the 200-day MA and the lower boundary of the multi-month channel.
– The 200-day MA holds significant importance and could act as support, potentially driving the price higher.
Potential Scenarios
– If BTC finds support at the 100 or 200-day MAs and reclaims the $30K level, it may trigger a rally towards the $38K resistance zone in the coming weeks.
– On the other hand, a break below the 100-day MA may lead to further downward movement towards the 200-day MA and the lower boundary of the multi-month channel.
Hot Take: Bitcoin’s Price Consolidates with Support at 100-day MA
Bitcoin’s price has been consolidating around the $30K level, with a corrective phase marked by minor rejections. The 100-day moving average has served as a strong support, preventing significant declines. The next key levels to watch are the 200-day moving average and the lower boundary of the multi-month channel. If BTC manages to find support and reclaim the $30K level, a rally towards the $38K resistance zone could be on the horizon. However, a break below the 100-day MA may lead to further downside.
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