Bitcoin Volatility Continues as Bulls and Bears Battle
The price of Bitcoin (BTC/USD) experienced volatility during the Asian session. It initially gained momentum, reaching the 26830 area from 26205.96. However, it struggled to maintain its upward progress. As the price surged, stops were triggered above various levels including 26433.41, 26502, 26625, and 26776. Strong stops were also elected above 26652.51 due to intraday bids.
Bulls of BTC/USD are hopeful that stops above the 27022 level will help sustain positive momentum. However, bearish technical risks remain, raising concerns of a potential downward movement towards price objectives around 25815, 25775, and further down.
Technical Resistance and Support Levels
Below the current market price, stops are accumulating below downside objectives such as 24155, 23270, and more. On the other hand, areas of technical resistance and selling pressure can be found at levels like 26929 and 27255.
Traders are closely monitoring three key levels: 29514, 23438, and 20195. These levels indicate selling pressure related to previous highs in the cryptocurrency market.
Technical Analysis Indicators
Technical indicators suggest a mixed sentiment in the market. The bullish indication is seen as the 50-bar MA (4-hourly) is above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). However, on an hourly chart, the bearish indication is observed as the 50-bar MA (hourly) is below the 100-bar MA (hourly) and the 200-bar MA (hourly).
The price is currently closest to the 50-bar MA (4-hourly) at 26631.23 and the 200-bar MA (hourly) at 26628.93.
Support and Resistance Levels, Technical Analysis Conclusion
Technical support is expected around levels like 24440.41, 23270.10, and 22769.39, with stops anticipated below these levels. Conversely, technical resistance is expected at levels such as 31986.16, 32989.19, and 34658.69, with stops expected above them.
Hot Take: Bitcoin’s Volatility Remains a Challenge for Traders
The recent volatility in Bitcoin’s price has made trading challenging for both bulls and bears. While bulls hope to sustain positive momentum by triggering stops above certain levels, bearish technical risks persist and may lead to further downside movement. Traders are closely monitoring key levels and technical indicators to gauge market sentiment and make informed decisions. The mixed signals from technical analysis indicators add to the uncertainty in the market. Overall, Bitcoin’s volatility continues to present opportunities and challenges for traders.
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