Bitcoin (BTC) – Entering an overwhelming zone of resistancePosted on Monday, February 7 2022 at 8:56 pm GMT+0000
Bitcoin (BTC) bounced more than 30% from its lowest level seen in six months on January 24 and is currently heading to a congested path of resistance.
The trendline breakout, which sent the price beyond 44,000 on Monday, raised optimism that the latest rebound could see further continuation. Furthermore, technical indicators are promoting additional gains in the price as the MACD is improving above its signal line and the RSI is ramping up to meet the 70 overbought level.
However, as mentioned earlier, the crypto-king is entering an overwhelming zone of resistance starting from January 13th high at 44,500 and stretching towards the 38.2% Fibonacci level of the November – January downtrend at 46,700, including a raft of lows posted in December. By successfully conquering this crucial zone, buyers may then tackle the 51,000 border before navigating towards the 61.8% Fibonacci level at 55,250.
If the price proves unable to penetrate the aforementioned resistance area, it will drop towards the mid-Bollinger seen around 38,500, and the neighboring descending trendline, before heading for a fresh test of the 33,000 low.
In brief, although Bitcoin is exhibiting a strong positive tone at the moment, traders should remain cautious as it approaches a crucial resistance zone.