(march, 2024) After Bitcoin reached its all-time high of about $73,800, the currency began to decline. This caused quite a few sweaty palms, as nobody knew where the price would stop. Meanwhile, the coin has bounced off a level that we have discussed several times before.
Two major price zones
We begin this analysis with the most important price levels, which are best observed on the weekly chart. Each candle here represents 7 days, allowing us to look far back into price history.
Two price zones are marked over the past 7 days. Around the $45,000 mark, and around $65,000. The first level originated in 2022 when the price was rejected here multiple times. The coin couldn't continue to rise, resulting in a significant drop. As a result, this price level remained important if the price ever returned here. This happened at the end of 2023/beginning of 2024. It was indeed evident then that Bitcoin had some difficulty pushing the price past this zone. But once this was achieved, the coin could easily move on to $65.000. Upon reaching this amount. the coin encountered hardly any resistance in the long term. BTC could effortlessly rise above $65.000, but the subsequent decline brought a bit of panic back into the market.
The decline of the past week
It became clear here that the buyers still did not have the upper hand. It wasn't until Bitcoin fell deeper into the zone, to a price of $62,000, that the coin started to rise again. It would be bad if the price fell below this zone, but BTC remained strong by a hair's breadth.
What can we expect?
The coin is now in the midst of another rise. It is therefore plausible that the coin could head towards its all-time high again, but to achieve that, one obstacle must still be overcome: breaking the minor downward trend. Bitcoin is once again making lower highs and lower lows, and this downward pattern has not yet been broken in the short term. If this happens – and the price surpasses its previous peak of $69,000 – it is likely that we will continue to rise. Until then, one should be wary of the price falling back below the red zone. Therefore, continue to monitor these price levels closely.
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