Bitcoin Price Analysis: Bearish Failure at 27724 Again – 11 October 2023
Bitcoin (BTC/USD) started the Asian session with a negative bias. The pair failed to sustain a short-lived break above the 50% retracement level of the recent appreciating range, indicating a bearish failure. Although buying activity initially lifted BTC/USD, it moved back below a key level, suggesting a return to lower levels.
Traders are closely watching significant technical levels as downside risks increase. Some downside price objectives include areas such as 24155, 23270, and 20702. On the other hand, areas of technical resistance and potential selling pressure are observed at levels like 28934, 29228, and 30222.
Technicians note that the 50-bar MA (4-hourly) is indicating bullishness above the 100-bar MA (4-hourly) and the 200-bar MA (4-hourly). However, the 50-bar MA (hourly) is indicating bearishness below the 100-bar MA (hourly) and the 200-bar MA (hourly).
The nearest price activity is around the 100-bar MA (4-hourly) at 27157.47 and the 50-bar MA (hourly) at 27706.93. Technical support is expected around levels like 24440.41, while technical resistance is expected around levels such as 31986.16.
On the charts, indicators such as SlowK and MACD show bearish signals on both the 4-hourly and hourly charts.
Hot Take: Bitcoin Faces Resistance at Key Level
Bitcoin’s recent attempt to break above a significant retracement level has resulted in a bearish failure. The failure to sustain the upward momentum suggests a potential return to lower levels. Traders are closely monitoring technical support and resistance levels as downside risks increase.
While the 50-bar MA (4-hourly) indicates bullishness, the 50-bar MA (hourly) shows bearishness, highlighting the uncertainty in the short-term price movement. Bitcoin’s ability to overcome resistance at key levels will determine its future direction.
Overall, caution is advised in trading Bitcoin as it navigates through these technical levels and faces selling pressure. Monitoring indicators such as SlowK and MACD can provide insights into market sentiment and potential price movements.
Disclaimer: The information provided here is for informational purposes only and should not be considered as financial advice. Cryptocurrency trading involves substantial risk of loss.
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