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BTC analysis – trend weakens, does BTC resist resistance zone?

2 min read

BTC continues the growing trend, but the current trend is slowing and weakening. In addition, we entered resistance zone from $ 46,000 to $ 49,000. It is with this area that the price of BTC can have a problem, so it will be important to watch how the graph reacts to it.

BTC losing volumes, but so far in the short term maintains the MA21 indicator. So growth has not been disrupted, but weakens. The price may climb to the aforementioned $ 49,000, but if the volumes do not increase significantly, we will eventually go into a short-term correction.

BTC / USD 4H.  Source: TradingView
BTC / USD 4H. Source: TradingView

BTC faces resistance for a short time

If a corrective leg actually occurs, then the most important support we will monitor is on level $ 41,000 to $ 40,000. In principle, the price does not have to go to this support area and the minimum can be set sooner. However, it is important that we do not go under this support. If we tested this zone, support would be created from long-term resistance and it would be a bullish signal. On the other hand, if we did not maintain this support, the price would fall again into the accumulation zone.

RSI also confirms a negative divergence slowing down the trend and reaches the third peak at about 70 points, while the price rose. However, volumes are minimal and lower than the last low, as was the case during the first growing leg in this trend.

From a short-term point of view, growth is therefore possible, but in the near future it is necessary to count on respect for the mentioned resistance and the subsequent short-term correction leg.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

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