The overall crypto space is yet again plunging into a descending trend squeezing the global market cap by nearly 1.91%. Most of the cryptos maintained a notable descending trend throughout the past weekend. Currently, the Bitcoin price is attempting to recover the gains from the lows around $41,600. However, the asset underwent a minute flip from the lows and is hovering just above the lower levels. Yet the possibility of a deep plunge has not completely eliminated.
Bitcoin(BTC) Price Analysis
The Bitcoin price was following a notable downtrend and plunged nearly 10% from the monthly highs above $45,800. In the long term, and in the mid-term, the BTC price displays the possibility of a notable uptrend waiting ahead. The assert in all the time horizons manifests the probability of surging more than 10% throughout the week and eventually smashing the crucial target of around $45,000.
The BTC price is trending within a notable falling wedge. The asset in the recent past trended within very narrow braces manifesting the possibility of plunging towards the lower levels. However, with the recent jump, the asset displayed the possibility of flipping the downtrend. No doubt at the press time, the BTC price is plunging hard, yet a strong flip appears to be pre-programmed. The upcoming jump may escalate the price above the local resistance at $45,549 to hit the important resistance at $48,000.
Technical Analysis & Pivot Levels
|Indicators & Pivot Levels||Value (Short-term)||Action (Short-term)|
|Relative Strength Index(RSI)||50.79||Neutral|
|Average Directional Index(ADX)||40.7||Sell|
|Average True Value(ATR)||312.73||High Volatile|
Bitcoin price in the short-term is manifesting a neutral trend as it seems that the asset is not ready to take up any quick decisions. The RSI is hovering within the average range but maintaining an uptrend. On the other hand, the MACD is on the verge to let out a buy signal and until then the price is expected to chop around these levels.
The ADX, the strength indicator, is depleting and hence even if the asset flips, it may maintain a minor uptrend, yet the possibilities of a bull run are negative. Yet the volatility indicator, ATR points out the asset is high volatile. Therefore the price of Bitcoin tends to change dramatically over a short period of time irrespective of the direction.
Coming to the pivot levels, the BTC price is testing the crucial 50-day MA levels in the STF that may pave the way to test the 200-day MA levels. And finally, attain the resistance at $43,800 which may ignite the rally to the crucial levels at $45,000. Once these levels are secured, then the strong resistance in the long-term around $48,000 may not be very much distinct.
Original Source :coinpedia.org
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