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the The price of bitcoin on Thursday is depreciated up to 10.33% against the US dollar.
Cryptocurrency hit an intraday low of $ 4,833 in an interim downtrend. He was already in an overbought zone when the downward action began. Traders have found a decent opportunity to break their long positions around the new annual bitcoin record of $ 5,342, dropping sharply to $ 4,789, yesterday's low. The price did not extend the correction and instead began to consolidate into a new trading range.
Bitcoin price consolidates below $ 5,000
PRICE OF BITCOIN PRICE 1D | SOURCE: TRADINGVIEW.COM, COINBASE
Coinbase data showed that bitcoin was more likely to extend its bearish correction to avoid overbought conditions. At 20:21 UTC, the RSI was well above 70, indicating that buyers will no longer be able to extend the bullish momentum. A red candle appeared later, bringing RSI closer to 70. Another selling action could therefore appear as the current session matures.
BITCOIN PRICE 1D (ZOOM VERSION) | SOURCE: TRADINGVIEW.COM, COINBASE
A prolonged bearish correction could lead Bitcoin to test $ 4,738 – the 50% level of the Fibonacci retracement chart from the recent wave of 4134 (at a low of 5342) – as the next potential support. Nevertheless, it is the level of 78.6% of the same wave that seems to be ideally positioned. The support of 4393 was a critical resistance level of the November 29 trading session of last year. Merchants could take this into account while opening new long orders.
We expect the bitcoin price to maintain its temporary bullish bias as long as it remains above the rising blue trend line. A break below will push the price into a support zone, which was previously a critical resistance zone. Bitcoin will only resume its long-term downtrend if it falls below the green bar. Until then, he would maintain his bullish momentum.
The Bitcoin price could test $ 6,000 if it exceeds the key resistance level
PRICE OF BITCOIN PRICE 1W | SOURCE: TRADINGVIEW.COM, COINBASE
As discussed in our previous badysis, the weekly bitcoin chart gave us two critical levels of resistance to watch.
First, it is the RSI level at 53.85 that has so far served as the boundary between a long-term bearish bias and a bullish bias.
Secondly, it is the 50-period EMA that prevents the weekly flourishing of Bitcoin from flourishing. A break above said moving average will coincide with a jump above 53.85.
If the price manages to stay afloat above these two resistances, the probability of an extension of its rise to $ 6,000 will increase considerably.
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