The latest downward move from the resistance of $45K might have trapped buyers that purchased the breakout action. While publishing this content, Bitcoin traded around the $42,640 mark and hinted at a weekly candlestick closing beneath $45,000.
Nevertheless, the crypto’s chart shows a climbing wedge setup that might prevent extended losses in the ongoing retracement.
Vital Points
- Bitcoin has its price forming an evening star candlestick on the weekly time-frame chart.
- The crypto resonates within a climbing wedge formation.
- Bitcoin’s intraday trading volume stood at $24.2 billion, suggesting a 32.6% drop.
BTC made a significant breakthrough from the resistance at $45K after spending the previous quarter in the accumulation period. The world’s leading crypto produced a weekly candlestick close beyond this resistance on 24 March, reflecting buyers’ intent to rise higher.
Nevertheless, bulls couldn’t maintain the breakout, and sellers dragged BTC back beneath the overpowered hurdle. Such scenarios might see traders that entered beyond $45K liquidating their holdings, accelerating the selling pressure.
Moreover, market enthusiasts can witness a bearish retest of the resistance at $45K in the coming week. This retest might affirm sellers’ dedication to dragging Bitcoin lower.
According to the technical chart, BTC investors react to the climbing wedge formation. Moreover, it indicates that the current correction is only a pullback towards a support trend-line.
Furthermore, the support floor at $40,000 matched the ascending trend-line and can ensure massive support for extended bullishness.
Resistance zones – $48,150 and $52,000
Support zones – $36,400 and $36,000
BTC Technical indicators
The somewhat flat 100- and 200-day Exponential Moving Averages reflect sideways actions for Bitcoin. Nevertheless, the dominant crypto hovering beneath these critical EMAs shows sellers exceed buyers.
The Relative Strength index slope plunged under the neutral level, indicating a negative stance by traders.
Bitcoin struggles to recover from the recent fall. The bellwether crypto gained 0.53% within the past day, changing hands around $42,703.04 at this publication. BTC stays 7.71% down over the previous seven days. Buyers need to step up to ensure higher price movements.
What are your opinions about BTC’s current condition? You can leave a reply in the comment area.
