Bitcoin (BTC), the world's leading cryptocurrency, has seen an escalating resistance level of $28,600 for the past couple of weeks. But despite the local headwinds, Bitcoin’s strong volatilities and the ability to reach new local highs imply that the resistance level is soon to be broken. According to the trading group “Birb Nest”, the recent increase in Bitcoin’s value, driving it up to new yearly highs, has actually taken BTC above all major long-term resistances, anchored at the 200-week Moving Average (MA) and 50-week MA, which signals a positive outlook for the currency since these resistances are key to determine the long-term path of the cryptocurrency.

Further, the evaluation by the trading group dictates that Bitcoin’s daily chart evidences “an increasingly bullish attitude”. This is because of the major trend depicted by the 200-day simple moving average (SMA), which has exhibited an inclining behavior. This highlights a positive long-term trend for Bitcoin, where the cryptocurrency could be leading the entire market towards a verified bull trend.

Furthermore, in the face of a probable drop in Bitcoin’s price in the near future, the trading group has identified meritorious support floors to serve as stabilizers. The BPRO baseline, one of the many tools used to analyze the crypto's price fluctuations, is exhibiting a more aggressive inclining character than the 200-day SMA, providing a new reference point at $22,800, which is higher than the earlier 200 SMA support of $20,500. Both these levels can even act as “dynamic” support points for Bitcoin’s price variations.

Moreover, the mid-day chart of Bitcoin showcases a continuous sideways drift. This implies that Bitcoin’s rate may remain fairly consistent in the near term. On the contrary, the HTF trailer of BirbicatorPRO, yet another technical indicator used to examine Bitcoin’s value, is still retaining its bullish characteristics.

In addition, the High Band resistance, governing the price of BTC in the $29,000 and $29,300 range, and the Low Band, which denotes the support zone in the $27,200 region, are prominent technical indicators to anticipate potential price movements in the long run. If a potential breakout is observed outside Bitcoin’s resistance and support bands, as seen in the chart, it may possibly announce a greater market shift, which could lead to a brand new short-term trend for the crypto. Finally, with Bitcoin standing at a trading price of $28,100, it is preserving its consolidation within a range that was formed two weeks ago. In the light of a potential drop, the trading group has highlighted several support levels of interest, such as $25,200, $23,900, $18,600, and $16,191, which can be used as references.



Other News from Today