The Key Level Bitcoin Bulls Must Defend
Bitcoin is approaching a crucial moment as it faces a key level that must be defended. With important timeframes closing in less than two days, the pressure is on for crypto bulls to reclaim this area. The level in question is the 2020 yearly close and the 2021 yearly open, which serve as high timeframe support and resistance. Reclaiming this level as support is crucial for Bitcoin’s continuation.
- A key technical level must be defended at all costs to prevent another leg down in the crypto market.
- The 2020 yearly close and 2021 yearly open act as important support and resistance levels.
- Reclaiming this level as support is crucial for Bitcoin’s continuation.
The Importance of the BTCUSD Yearly Open & Close
High timeframe signals hold significant weight in the market, making the yearly chart more dominant than the daily chart. Bitcoin opened at around $28,888 in 2021, and this level is now acting as resistance after losing its support status. Bulls are aiming to flip the 2020 close and 2021 open back to support. If successful, the cryptocurrency market could see a potential rise back to previous all-time highs.
- The yearly chart holds more weight in the market than the daily chart.
- $28,888 is an important level that needs to be closed above on multiple timeframes.
- Reclaiming the 2020 close and 2021 open as support could lead to a potential rally in the cryptocurrency market.
It is important to note that the content presented here is educational and should not be considered investment advice. Tony, the author of the CoinChartist newsletter, provides market insights and technical analysis education through his Twitter account and Telegram group.
Hot Take: Bitcoin’s ability to defend the key level at the 2020 yearly close and 2021 yearly open will determine its short-term direction. Reclaiming this level as support could pave the way for a bullish continuation, while failing to do so may result in further downside pressure.
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