Bitcoin Consolidates Losses as Bears Test Key Support Levels
Bitcoin (BTC/USD) is currently consolidating some of its recent losses, hovering around the 50% retracement level at 26756.69. Bears have pushed the price as low as 26521.32, marking the lowest point since late September and testing the 78.6% retracement level. Stops were triggered below 27097.06 and 27029.82, which are downside price objectives related to recent selling pressure.
Downside price objectives include levels such as 26365 and 25770, with stops accumulating below these levels. On the other hand, areas of technical resistance and potential selling pressure can be found at 28934, 29228, 29665, 29964, 30053, and 30222. Stops are cited above the 30178 and 31862 areas.
Traders are observing that the 50-bar MA (4-hourly) is indicating a bullish signal above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). However, the hourly chart shows a bearish indication of the 50-bar MA below the 100-bar MA and the 200-bar MA.
The price is currently closest to the 200-bar MA (4-hourly) at 26788.39 and the 50-bar MA (hourly) at 27051.07. Technical support is expected around levels such as 24440.41, 23270.10, and 22769.39, while technical resistance is anticipated at levels like 31986.16, 32989.19, and 34658.69.
In terms of technical indicators, on the four-hourly chart, SlowK is bearishly below SlowD, and MACD is bearishly below MACDAverage. However, on the hourly chart, SlowK is bullishly above SlowD, and MACD is bullishly above MACDAverage.
Hot Take: Bitcoin Faces Key Support Test Amidst Consolidation Phase
Bitcoin is currently in a consolidation phase, with bears testing key support levels. The cryptocurrency has experienced a pullback, reaching its lowest point since late September. Traders are closely monitoring various technical indicators and levels to gauge the market sentiment. While there are downside price objectives to watch out for, areas of resistance also pose potential selling pressure. As Bitcoin navigates this period of consolidation, it remains to be seen whether it will break through key support or regain momentum towards higher levels.
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