Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today I will be looking at the recent movements in the cryptocurrency market, specifically at Bitcoin and how it has hit a strong level of resistance at $31,000. Twice. This is often the sign of a double top, which brings about the fear of an impending downturn and bearish sentiment for the market.
Bitcoin Resistance
Bitcoin is of course the most popular and well known crypto in the world, with much of the cryptocurrency market following its price movements. Therefore its recent struggles with the significant obstacle of a double top at the $31,000 level is beginning to cause some concern among investors and traders alike. This level has been known to act as a strong resistance in the past, and could be a signal for an incoming bearish correction in the near future.
At the time of writing Bitcoin is sitting at around the $30,357 mark, and in the past 24 hours its value has seen a 0.39% increase. It's 24 hour high reached $30,666 while its 24 hour low saw it drop to the $29,930 mark.
As shown in the chart above, the price twice reached the $31,000 mark before dropping back down. This double top pattern was accompanied by the RSI sitting in an oversold position while the MACD crossed to signify a impending decline after the first of the double top. With the RSI once again in an oversold position, and the potential for another crossover in the MACD, a correction in Bitcoin's price could be expected in the near future.
The bullish sentiment is weaking according to the suggestions of this chart, while the next immediate level of support is found at around the $29,600 level. If Bitcoin was to break below this level, it could signal a harsh downwards movement in the market and will then be targeting key supports at around the $28,250. Below this, the next key support could be around the $26,750 mark.
While the MACD is considered neutral, the RSI is on the verge of being oversold once again, while is often a good indication of a reversal in the trend. A correction is likely, although like everything in crypto nothing is assured. If Bitcoin does manage to break above the $31,000 level, the next target to watch for is around the $32,500 mark. If momentum really takes hold, Bitcoin would then be aiming for around the $34,000 level.
Interesting days ahead, and if a correction does happen lets hope Bitcoin can hold out above its first level of support at $29,600.
Have a great day.
Peace. CryptoGod-1.
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