The Bitcoin price has not changed much this week. The price has been hovering just below a major resistance for some time and now appears to be moving sideways below it. This usually results in a violent movement. The only question is: which one to which side? Let’s look at the graphs.
How is BTC doing?
We’ll start this analysis with a quick look at the weekly and daily chart. This is important to analyze the strongest price levels that can influence the price. These are shown as green zones in the image below.
These are price levels that have caused price changes before. First, the upper level of around $45,000: this is where Bitcoin most recently encountered resistance. The price was unable to get past this level because there were too many sellers around this price.
This has to do with the fact that Bitcoin fell sharply from this point in the past. When this has happened in the past, it usually indicates that – if the price comes back here – many investors will want to get out again. Yet there is a chance that this will still work.
Uptrend intact
Bitcoin is simply in an uptrend and is still not making lower lows. The big picture looks very nice. We can see this better on the daily chart, where each candle represents 24 hours. As you can see, the lower green zone also becomes clearer here. This is around a price of 37,500 dollars and previously caused resistance.
Still, the coin continued to make higher lows below this level, eventually pushing $45,000. Since then, BTC has not returned to the zone, but that could still happen. The most logical confirmation would be if the coin closes below the red line.
In that case, the currency makes a new low which is not a positive sign. But if the price holds strong at this level, there is still no major danger on the larger charts.
Big move coming?
However, there is something visible on the 1-hour chart that may indicate that there may be a significant move up or down soon. Bitcoin has stopped its upward trend there for a while and is now moving sideways.
This usually causes the coin to shoot up or down sharply in one go. It doesn’t mean that this will happen with 100% certainty, but if it happens here, it could be very important for the rest of the course of the price.
A break to the downside could push the coin below the red line at $40,400 (which could push it further down to $37,500). But it is also possible that the coin breaks out to the upside, in which case the price can conquer the large zone of $ 45,000. This can ensure that we have a very positive, green Christmas.
2023-12-23 14:58:24
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