Bitcoin (BTC) Price Could Test $48,000 Again, Here’s Why?
The price of Bitcoin (BTC) has regained a key support zone and created a bullish candle. It is expected to rise higher in the near future.
The price of Bitcoin (BTC) dropped after being rejected by the strong resistance zone at $48,000 in the week from January 8 to 14, 2024 (red arrow).
In the previous week, the BTC price broke down below the important support zone at $40,500 and touched the lowest level at $38,600. However, this turned out to be a false breakdown as the BTC price regained this zone and created a pin bar bullish candle.
This formed a bear trap and was usually followed by a strong rally.
The weekly RSI indicator bounced back and was on the verge of breaking above the bearish divergence line. Both were bullish signals, indicating that the bulls were regaining control.
Therefore, the BTC price is likely to test the strong resistance zobe at $48,000 again. This number corresponds to a 12.48% increase compared to the current price.
Despite the bullish signals from the weekly time frame, the 4-hour chart shows that the BTC price was rejected by the horizontal resistance zone at $43,500 yesterday (red arrow).
The rejection was supported by a bearish divergence on the 4-hour RSI indicator, which usually occurred before corrections.
Therefore, the BTC price may drop to the nearest horizontal support zone at $41,500 in the short term.
The most likely scenario is that the BTC price will rise to the strong resistance zone at $48,000 again. However, the price may adjust to $41,500 before doing so.
The bullish view will be invalidated if the BTC price closes the weekly candle below the $40,500 zone.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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