Price Analysis

Bitcoin Rejected From Crucial Levels: Is the BTC Price Rally Flipping Back to Support?

Ever since the star token, Bitcoin entered a crucial resistance zone above $57,200, the market participants have become quite hopeful of the upcoming trend. Moreover, these levels have offered a strong base earlier and hence a clear pass through the zone was believed to trigger a fresh ascending trend. However, the bulls are finding it extremely difficult to surpass the zone, as the bears appear to have stationed at a crucial resistance. 

The recent pullback suggests the bears continue to have a strong grip over the rally and hence, as stated in our previous blog, the BTC price may not be over yet. The trader’s attention over the star crypto has increased to a large extent as the fear of a substantial plunge has compelled many of them to close their positions. Nevertheless, Bitcoin is trying hard to secure a critical resistance, which is believed to turn the tables for the token. 

During the previous day’s trade, the BTC price attempted to break above the crucial resistance at the 200-day MA. The bulls failed to do so which resulted in a bearish close for the day followed by a strong combat with the bears since the early trading hours. Despite the growing bearish influence, the tokens remain stuck within the support zone, reviving the bullish expectations in the coming days. However, the technicals suggest a minor pullback could be on the horizon which may drag the levels towards new lows. 

The DMI or direct movement indicator, which helps identify the trend of the rally, seems to be preparing for a bearish spell. Both +Di & -Di is preparing for a bearish crossover as the ADX is plunging. As the strength of the rally may drop in the coming days, the price is expected to remain consolidated below $60,000 for a while. If the Bitcoin bulls manage to break above the 200-D MA at $58,971.70, then the BTC price may begin with a fresh ascending trend to test the higher resistance. 

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