Bitcoin is already two months into its year and has experienced an exciting 2022. Although Bitcoin has experienced a steady decline over the past few months, it has seen some remarkable recoveries to reach $40K. This level was not maintained for previous periods. Is the third attempt the charm? Or is there a chance for a complete reversal soon?
Bitcoin Trading between $40K-$44K
Bitcoin had just pulled one its most powerful reverse cards on Monday and broke through $44,000. However, bitcoin didn’t stop there. The run continued until the digital asset reached $44K. It was the third time this year that cryptocurrency had been above the $44K mark, though these recovery points were similar, although they have all occurred under different circumstances.
Related Reading | Short Traders Decimated As Bitcoin Barrels Past $43,000
Every rally, bitcoin has encountered significant resistance above $44,000. Although bitcoin has managed to surpass this level twice, it never held on. The Monday rally was an example of this. Although the digital asset reached above $44K on Monday, it experienced a minor downward trend that placed it back within the $43,000 price range.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin has fought back and is now above $44K. The bitcoin market is weaker at the moment, but bears could easily take it down.
How does it all work?
There are many options for how bitcoin prices could change. Despite recent rallies, the momentum is low because crypto investors have slowed down their activity. It could be the continuation or a reversal below $40K depending on the location of the digital asset.
Bitcoin’s Price Up $10K As Crypto Is Predicted To Breach $100K In 5 Years| Bitcoin’s Price Up $10K As Crypto Is Predicted To Breach $100K In 5 Years
BTC can be held above $44K. If support at the 50 day moving average is not weakening or waving, the next rally could see bitcoin reaching $47K. Although there are some resistance points along the path to the price level, none of them are as strong or as significant as the $44K resistance. This makes it an easy break for bitcoin.
BTC movements unclear starting at $44K Source: Arcane Research| Source: Arcane Research
The flipside is that this rally could end as fast as it started. Bitcoin could fall to $40,000. If it loses support at $44K or the 50-day moving mean, This time, the only thing that has changed is that the $40K resistance level will now be flipped. Although it’s not as solid as in the $36K-$38K area,
At the time this article was written, BTC traded above $44,100. It’s all green candlesticks at this point as investor sentiment shifts to the positive.
Featured image taken from Financial Synergies Wealth Advisors. Charts from Arcane Research and TradingView.com.