Bitcoin Price Retraces Back to Previous Support - weidlersomblifir

Bitcoin's terms performance has started off the yr with a bang and the price charts still reckon long-term bullish.

At the time of this piece of writing, Bitcoin's YTD performance against the USD shows a 71% increase.  As we overture the final days of February, it is shaping up to be a solid month overly with a 47% gain.

For those that followed our long-term foretell for bitcoin and what levels to consider for 2022, we illustrated a Mary Leontyne Pric channel and how the mid-line of the monetary value channel Crataegus laevigata ply temporary resistance.  Well, before in January, price did exact frown from the mid-line and has after pushed high.

Bitcoin terms chart from 2022 to 2022

(click look-alike to enlarge)

After this recent buying spree, Bitcoin has gone through other corrective dip set to $44,845 this hebdomad.

Bitcoin's Technical Analysis Forecast

Victimization chart reading and technical analysis as our guide the 23% corrective dip this week's fits nicely within the charts.

You see, when bitcoin prices converse near $42,000 on January 8, there was a significant level of resistance which was created.

Bitcoin's Middle-aged Resistance Turned into Fresh Support

(click image to blow up)

First, using the Fibonacci extension tool, $42,000 represented the 1.618 extension of the Edge 2022 to June 2022 dormie trend.

Secondly, $42,000 also represents the lesser celebrated 4.236 extension of the June to August 2022 uptrend.

Lastly, in addition to the wave measurements, the longer-terminal figure convey mid-line rolled through with at a similar price zone.

This confluence of wave measurements created a reaction in the grocery.  This reaction in the market created a strong level of resistance.

Later on bitcoin prices aplanatic turn down in January, the king of crypto gathered steam to break bent on new all-clock time highs.

This is where things become really interesting.

You see, once resistance is broken, many times prices will pull back to the broken resistance level offering another opportunity to leap into the trade in.

The bitcoin price correction from earlier this week came some the point of breakout.  We cannot rule proscribed a further correction of price.  If that takes place, look to bitcoin prices to find living near $42,000.

If this $42,000 key level cannot check bitcoin's prices, then the next unwavering of support is drink down near $28,000-$30,000.

If bitcoin is successful in finding support, then spirit for the uptrend to continue to unused highs above $60,000.

Bitcoin Trading Frequently Asked Questions

Since bitcoin and other alt coins are so new, is technical analysis and graph reading exact?

Yes, discipline analysis can be straight with some limitations.  First, if you consider what technical analysis really is, you are gaining a sensory faculty of the sentiment of the market via price action.  The more participants (the bigger the market), then you tend to see a better picture.  A little market will have more than inconsistencies with technical analysis.

Bitcoin and other big cryptocurrencies have an advantage in technical analysis as they give grown into sizeable markets.  Bitcoin's market capitalization is now worth over $1 one million million.

Interested in learning more about how to read charts of bitcoin and other markets?  Become a TradingPedia Insider by joining the Trading Leontyne Price Newsletter and receive clear analysis and education twice per hebdomad.

Author: Jeremy is a charting expert and trading veteran who has educated hundreds of thousands of traders over the past decade. His specialty is chart reading and specialized analysis.

Source: https://www.tradingpedia.com/2021/02/25/bitcoin-price-retraces-back-to-previous-support/

Posted by: weidlersomblifir.blogspot.com

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