BTC analysis – the price is struggling with resistance, should we expect a short-term decline?
2 min readBTC continues its upward trend in the long run, but in the short run the price has created a double peak in resistance. Even MA21 has been broken, so it is worth thinking about respecting resistance and corrective leg. How far can the price fall in the event of a correction?
BTC created double top on the surface about $ 46,700 and also failed to maintain MA21, even though the 4H candle was not yet closed. If the close price closes below MA21, it is quite likely that we will go for a correction. I expect a corrective leg up to a maximum of $ 40,000 to $ 41,000. This is where the previous resistance of the two-month sideway structure is located.
In addition, there is long-term previous resistance from local ATH maxima in this area. If the price manages to test this zone as support, it would be a bullish signal to buy. On the other hand, the price does not necessarily go up to this level of support. If the purchasing pressure is strong enough, a minimum can be created even higher.
BTC is bearish for a short time
Volumes they also confirm the weakening of the trend and are minimal for breaking resistance. Indicator RSI after a triple peak at the overbought threshold of 70 points, it also decreases and confirms the short-term correction with a negative divergence.
However, the trend will continue in the long run, if the price does not fall below the mentioned support. So we can probably expect a return to the $ 46,200 to $ 49,000 zone.
