Bitcoin Price Analysis: Navigating Between Key Support and Resistance Levels
Bitcoin has just breached the 27,000 level, currently portraying a considerably weak trend.
The 89-day moving average serves as a crucial support level, warranting close monitoring. On March 10, Bitcoin dropped to the 89-day moving average, triggering a rebound exceeding 50%. Last Friday, following a dip below the 89-day moving average, Bitcoin promptly initiated a rebound, peaking at 27,650. Currently, Bitcoin continues to consolidate above the vicinity of the 89-day moving average. A significant breakdown below the 89-day moving average without a subsequent recovery may potentially ignite a new round of substantial decline.
From the 4-hour chart perspective, Bitcoin is navigating a downtrend channel. Post-rebound, Bitcoin failed to breach the recent high of 28,290, indicating the downward trend remains unbroken.
As per the 4-hour chart, the recent rebound also exhibits factors of RSI and MACD bullish divergence. Currently, the 55-period line on the 4-hour chart is a conspicuous resistance level. Bitcoin needs to surpass this 55-period line on the 4-hour timeframe to possibly initiate a further upward surge.
Prior to the emergence of a clear direction, Bitcoin may continue to consolidate within the box defined by the 89-day moving average support line and the 55-period resistance line on the 4-hour chart.
Please note that the data and indicators mentioned are based on the Bitcoin price chart from Binance.