The new bull cycle from the support trendline($37776) has pumped the Bitcoin(BTC) price of $45000 monthly resistance. For almost three months, the coin price has faced multiple rejections from this level, and it has approached for the fifth time. Can buyers build enough momentum to reclaim this level?
Source- Tradingview
After the BTC sellers marked their current lower low at $33000, the coin price has been rising with an upcoming ascending trendline. The new higher lows are trying to minimize the sellers’ attempt to go all out, but the buyers struggle to close the candle above $45000.
Currently, the BTC price retests the overhead resistance zone for the fifth time in nearly three months. Furthermore, the high tail rejection attached to the past daily candle with lowering volume activity suggests another reversal.
The potential correction has a higher chance to plunge 10% and retest the confluence support of the ascending trendline and $40000. The traders could grab a good dip opportunity if the coin chart shows a sign of reversal at this support.
Moreover, as per on-chain data from the intotheblock platform the Addresses holding bitcoin have surpassed 40 million for the first time.
On a contrary note, if sellers manage to breach the dynamic support trendline, the BTC price could revisit the January low of $33000.
- Resistance level- $45000, $52000
- Support level- $45000, $36000
Technical indicator
The trend defining 200-day EMA intensifies the sellers’ defense at $45000 and assists for a bearish reversal. This resistance confluence adds more weightage on how important it is for buyers to reclaim it.
The gradual rise in the Relative Strength index suggests the bulls are gaining momentum. Moreover, the RSI slope is distancing higher from the 14-SMA and midline.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/bitcoin-price-prediction-btc-price-tags-the-formidable-resistance-again-buy-the-dip/