Bitcoin's Price Fluctuations around $43,000 Don't Halt the Rising Trend
Date: 2024-02-06 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin's Short-Term Outlook
On the hourly chart, Bitcoin's price movement shows a brief upward trend, with higher lows indicating sustained buying interest. Bulls successfully defended the support at $42,243, which could serve as a potential entry point on pullbacks. Resistance is taking shape around the $43,210 mark, which bulls need to breach.
4-Hour Perspective
A closer look at the 4-hour chart reveals a more volatile picture, with an ascending trend characterized by a series of higher highs and higher lows. Critical support to watch is at $41,859, where bulls may consider entering long positions. Resistance on this chart is at $43,738, potentially bringing selling pressure.
Daily Chart Analysis
On the daily chart, Bitcoin is consolidating after a recent downtrend. Despite the market still being in a narrow range, the overall bias seems to favor an upward movement. Key support at $38,505 has held firm during the recent pullback, keeping the bulls in control. The resistance line stands at $49,048, a record high for the year.
Technical Indicators
Overall, oscillators and moving averages confirm the short-term, medium-term, and long-term upward trend. The Relative Strength Index (RSI), Stochastic, Commodity Channel Index (CCI), and Moving Average Convergence Divergence (MACD) all signal a bullish momentum at the time of publication.
Trading Strategy
Analysis across various timeframes suggests that Bitcoin's upward trend remains intact. Traders may look to buy on dips, setting tight stop-loss orders below critical support levels. Initial upside targets are situated around resistance zones, but traders should also consider trailing stop-losses to capitalize on extended upward movements. Bulls are expected to dominate as long as support holds.
Bullish Scenario
Convergence of bullish signals across short-term, medium-term, and long-term timeframes paints a decisively bullish picture. Bitcoin appears poised to continue its upward trend as long as critical support levels remain intact. Traders may buy on dips, targeting upper resistance zones. The path of least resistance remains upward.
Bearish Scenario
Despite bullish signals, the risk of a trend reversal persists, especially if critical support levels fail to hold. Traders should exercise caution when seeking long entries, maintaining tight stop-loss orders below support. Current price action suggests potential exhaustion among bulls. Until Bitcoin gains upward momentum above resistance, bears may attempt to trap bullish traders.
