The Bitcoin Resistance Level That Just Won’t Budge

Bitcoin’s recent rise has been halted by a major roadblock. The bears had repelled bitcoin after it broke above $47,000. It was due to a crucial resistance level that bitcoin could not overcome at the time. The bitcoin price has dropped to $44,000 as it continues to battle with this resistance point. For cryptocurrency to register a bullish tendency, this is the point to beat.

Bitcoin Failed To Break the Resistance

It can be tricky to get Bitcoin into a bullish market. It is because bears mount increasing resistance to bitcoin’s price. Bitcoin had faced significant resistance at $47,500. The failure to surpass this mark sent bitcoin spiraling down, landing back in the $40,000 range.

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It is a crucial point for bitcoin because it represents the main resistance between the asset’s price and its coveted $50,000 price. Although it may not reach the all-time record, $50,00 is a significant milestone for the cryptocurrency.

BTC is at $47,000. This technical level is crucial for BTC. A failure to hold a position over this will result in severe downtrends. The $45,000 level was where bulls seemed to have established significant resistance. BTC falling below this point makes it obvious that this support is not as strong or reliable as the $36,000-$38,000 level.

Bitcoin price chart from TradingView.com

BTC in a down correction| Source: BTCUSD on TradingView.com

Egor Volotkovich is the Executive Director for cross-chain solutions at EVODeFi. This correction comes after a huge bull run. “Bitcoin is leading a general market correction today as it retested the $45,000 support level after surging to a 24-hour high of $47,106,” said Volotkovich. “The correction is a somewhat temporary breather that the BTC investors are exhibiting following periods of consistent growth and resilience across the board.”

Better Things

Bitcoin looks better long-term. In the short-term, Bitcoin had established a stronger bullish trend after it broke above its 50 day moving average. This can now be carried over into the long-term.

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This support has been formed around the 200-day moving median, which was always an indicator of positive things in the future. With momentum increasing and both institutional and retail buying picking up, the argument is stronger for long-term profitability.

“With the continuous buying momentum as seen by the inflows into major BTC-hinged products like the Canadian Bitcoin ETFs, the chances that Bitcoin’s momentous growth will be reintroduced in the near future is high, and should this happen, we may see prices retest the $48,000 benchmark before mid-month,” concluded Egor Volotkovich.

Featured Image from MARCA chart by TradingView.com

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