Bitcoin Facing Heavy Resistance as It Approaches $47,000
Bitcoin (BTC) and most altcoins are currently enjoying a bullish trend. However, caution is necessary as BTC approaches the $47,000 mark, where heavy resistance is expected.
It’s easy to get carried away and enter long positions at high prices when the market is bullish. The Fear and Greed Index is currently registering in the Greed at 72, similar to a month ago when bitcoin was at its high and the Spot Bitcoin ETFs were announced.
BTC Surprises with Strong Price Surge
Since breaking through the trend line on the chart, BTC has surprised with a strong 8% price surge. However, now that it has reached the resistance level, the momentum is likely to slow down.
BTC Faces Resistance at $47,000
The resistance area for BTC currently spans from $46,600 to around $47,000. Breaking through this level would bring BTC close to its yearly high, while a breakdown would establish a new support level at $44,000.
Confirmation of Resistance Expected
When analyzing the weekly time frame and looking at historical data, the main support for BTC is at $42,000. If the resistance at $47,000 is breached, the next level of resistance awaits just above at the 0.618 level. This level was reached before when BTC hit $49,000, potentially indicating a double top and confirming the resistance. It is highly likely that a rejection could occur at this level, so caution is advised for traders.
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