Bitcoin (BTC) Encounters Rejection on First Attempt to Challenge $39K

  • Bitcoin trades below a descending resistance level.
  • The currency faces a horizontal resistance zone of around $40,800.
  • The MACD highlights a bullish outlook.

Bitcoin (BTC) has kept an upside stance since 24 January and now explores its long-term plunging resistance line. Analysts believe the leading crypto will eventually overcome this line.

Bitcoin has kept its price actions within an ascending channel since 2021 April. On 24 January 2022, it touched the $32,917 local low before bouncing to create a lower wick that authorized this channel as BTC’s support.

For now, Bitcoin trades slightly below the descending resistance level that maintained since the ATH of $69,000, attained on 20 November 2021. A breakout now will see BTC at its nearest resistance of $40,800. Therefore, the crypto has a substantial resistance zone beyond the asset’s current price.

Future Movement

The daily Moving Average Convergence Divergence shows BTC hovering within an accumulation period, awaiting a considerable surge. That can be because this indicator remained negative for around 81 days. That accounted for the 2nd-longest phase of negative daily MACT over the last four years, following March to June 2021, when the indicator remained negative for nearly 83 days. The Relative Strength Index presents similar readings.

According to the 6-hour chart, this is the 3rd breakout trial by Bitcoin. Analysts expect a breakout from the line since resistance levels get weaker with every challenge. BTC will target the resistance mark at $46,763 around the 0.382 Fibonacci retracement resistance if such a move occurs. After that, it will eye 0.5 at $51,000. Remember, Bitcoin has to overcome the line to record a significant upside move.

Bitcoin Wave Count

The near-term wave count presents two possible scenarios. The first in Bitcoin completes the diagonal from the 24 January low and currently stands at wave four. Such diagonals print an ascending wedge. An alternate near-term count shows the current setup is a portion of an irregular flat retracement.

While publishing this content, Bitcoin trades with an upside stance near $38,585.36.What are your opinions about Bitcoin’s price movements? Feel free to comment in the section below.

By Edward Richardson
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