Bitcoin's Price Rises Again: Key Support Levels Tested
Bitcoin's price is rising again after testing key support levels. The next few days will determine whether the market will start to recover or if the downward trend will continue.
Bitcoin's price action has been encouraging of late, with the market testing key support levels and seeing a significant rebound. The next few days will be crucial in determining whether the market can start a mid-term recovery, or if the downtrend will continue.
Technical Analysis: How to Use Charts and Indicators to Trade Successfully
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The Daily Chart: A quick summary of the day's events
Looking at the daily chart, it appears that the correction that began a few weeks ago has been halted above the $16,000 support level. This is a positive development, as it suggests that the market may be stabilizing and that prices may begin to rise again in the near future.
There is still lack of bullish momentum and the price has failed to reach the $18K level. However, a wide descending channel, which is considered a bullish reversal pattern, is forming. If there is a breakout from the higher boundary of the pattern, it could signal the beginning of a mid-term bullish trend and the end of the bear market.
It is clear that the market is in a period of transition, with strong obstacles preventing any significant movement in either direction. However, the possibility of a bearish breakout cannot be dismissed, and this could lead to further losses in the value of Bitcoin.
The 4-Hour Chart: A Comprehensive Guide
The 4-hour timeframe offers a clear view of the current consolidation. The price has recently rebounded from the $15,500 level for the second time and broken the triangle pattern to the upside. Theoretically, a rally toward $18K could be expected from a classical price action standpoint. The recent price action suggests that bulls are in control and a move to $18,000 is possible in the near-term. However, traders should be aware of potential resistance around the $17,000 level.
There are doubts about whether the current rebound in prices will continue, as the bullish momentum has faded in recent days. The RSI indicator, which measures the current price momentum, is also approximately flat. Although the price shows little intent to rally higher at this point, the bulls are still relatively in control, and it is still possible that prices could continue to rise towards the $18,000 level.
It's no secret that Bitcoin has had a tough time of late, with prices struggling to recover from last year's lows. However, there are some positive signs emerging that suggest the cryptocurrency may finally be ready to turn things around. One such sign is the increasing number of searches for "Bitcoin" on Google.