Bitcoin (BTC) Encounters Volatility Amid Technical Guidance
Early in the Asian session, Bitcoin (BTC/USD) experienced heightened volatility as traders awaited technical guidance following a significant decline. The price test of the 100-bar simple moving average on 12-hourly bars saw BTC/USD drop to the 40625.68 area. Multiple stops were triggered below various support levels during the depreciation, with BTC/USD peaking at the 45925.82 area, the highest point since May 2022.
Bulls are now looking towards the 61.8% retracement level at the 48647.72 area, while technical support and potential buying pressure can be found at several levels, including 39705, 38735, 37893, and 35857.
Traders are closely monitoring the moving averages, as the bullish indication of the 50-bar MA (4-hourly) above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly) suggests a positive trend. The same bullish indication is observed with the 50-bar MA (hourly) above the 100-bar MA (hourly) and the 200-bar MA (hourly).
Price activity is currently near the 200-bar MA (4-hourly) at 42295.51 and the 200-bar MA (Hourly) 43112.89.
Technical support is expected around 37392.45, 36720.55, and 35633.00, with stops anticipated below these levels. On the other hand, technical resistance is expected around 46487.10, 47108.16, and 48240.00, with stops projected above these levels.
The 4-hourly chart indicates a bearish stance as SlowK is below SlowD, while MACD is below the MACDAverage. The same bearish trend is visible on the 60-minute chart with SlowK below SlowD and MACD below MACDAverage.
Sally Ho’s Technical AnalysisView Yesterday’s Trading Analysis
Hot Take: Bitcoin’s Volatility Shakes Bulls
The heightened volatility in Bitcoin’s price has created uncertainty for bulls in the crypto market. After a significant decline, BTC/USD faced a test of the 100-bar simple moving average. With stops triggered below various key support levels, Bitcoin reached a multi-month high, leaving traders cautious about potential buying opportunities.
The upcoming challenge for bulls is the 61.8% retracement level, which could determine the future direction of Bitcoin’s price. Technical support levels are crucial for sustaining any potential recovery, while traders closely monitor the moving averages for bullish indications.
Despite the current bearish signals on the charts, market sentiment remains uncertain as traders await further technical guidance and analysis. The crypto market continues to offer both risks and opportunities for traders, highlighting the need for careful observation and analysis to navigate through Bitcoin’s volatility successfully.
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