Technical analysis is an important indicator that investors, especially those trading in the futures market, need to constantly follow in the cryptocurrency market. So what clues do technical analyses provide for Bitcoin, which is currently trading at $37,140? Let’s examine in detail the charts, important support and resistance levels.
Recently, there have been notable developments on the four-hour chart of Bitcoin, which have delighted not only Bitcoin investors but also cryptocurrency investors with its price movements. The upward momentum that started on November 8 broke the resistance in the channel formation that has been ongoing since October 25, and after gaining strength at the support line, Bitcoin experienced a significant rise.
The important support levels that need to be followed for Bitcoin on the four-hour chart are respectively $36,393, $36,743, and $36,996. Especially if the closing of the last bar is below the significant support level of $36,996, it may cause Bitcoin to lose value in the short term and fall to the support line of $36,393.
The important resistance levels that need to be considered for Bitcoin on the four-hour chart are respectively $37,420, $38,005, and $38,431. In particular, the breakthrough of the resistance level of $38,431, which acted as resistance during the rise on November 9, is of vital importance for Bitcoin.
The rising channel formation on the weekly chart of Bitcoin since November 2022 stands out. The breakthrough in resistance in April gave hope to investors, but this movement appears to be a bull trap. On the latest upward movement, the strength gained from the channel support allowed many investors to make significant gains.
The most important support levels to watch on the weekly Bitcoin chart are respectively $34,580, $31,986, and $28,945. Especially if the weekly bar closes below the support level of $34,580, it may cause the momentum of the Bitcoin price to weaken.
The most important resistance levels to watch on the weekly Bitcoin chart are respectively $38,120, $39,732, and $41,312. In particular, if the weekly bar closes above the unseen level of $39,732 since April 2022, it could lead to a breakthrough in the rising channel formation.