Bitcoin (BTC) is still raging upwards along with the vast majority of altcoins. However, heavy resistance is starting to bear down on the price as $BTC nears $47,000. Extreme caution is advised.
When the whole of the crypto market is so bullish it is very easy to get carried away and enter long positions at a very high price. The Fear and Greed Index is now registering in the Greed at 72, practically the same as it was one month ago when the Spot Bitcoin ETFs were announced, and bitcoin was at its high.
$BTC surprises again
Source: Coingecko/Trading View
$BTC has certainly surprised again, with a very strong spurt in price since it broke through the trend line pictured in the chart above. The price has moved up 8% since the breakthrough, and now it has entered resistance the impetus is likely to slow.
$BTC slows at resistance
Source: Coingecko/Trading View
As can be observed from the chart above, $BTC is at the resistance area that stretches from $46,600 to around $47,000. Break through this and it’s not far from the yearly high. Break down and the new support is at $44,000.
Rejection is likely
Source: Coingecko/Trading View
As always, when zooming right out on the weekly time frame and looking left, the picture usually appears a lot clearer. The main support is at $42,000, and if $BTC can get through the resistance at $47,000, the 0.618 level awaits just overhead.
This is the level that $BTC tagged last time it came to $49,000. If the price gets there again this could be a double top, and a confirmation of the resistance. It would be highly likely that there could be a rejection from this level. Traders beware.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/02/bitcoin-btc-heading-for-huge-rejection-area-traders-beware