In the cryptocurrency market, technical analysis emerges as an indicator that investors, especially those trading in the futures market, need to follow continuously. So, what clues does technical analysis provide for Bitcoin, which was trading at $44,150 at the time the article was written? We examine it with detailed chart analysis and key support and resistance levels.
Bitcoin Daily Chart Analysis
The first noticeable formation structure in the daily Bitcoin chart analysis is the rising channel formation. According to this formation structure, Bitcoin successfully completed the resistance breakout in the first week of December, powered by the support line from October, and this was accompanied by a significant rise in the Bitcoin price. The resistance line acting as support during this process is a positive development for the Bitcoin price.
The most important support levels to follow on the Bitcoin chart are, respectively; $42,219 / $40,348 and $38,310. Especially, a daily bar closing below the $40,348 level, which intersects with the formation resistance line, will cause Bitcoin’s price to face selling pressure.
The most important resistance levels to pay attention to on the Bitcoin chart are, respectively; $44,681 / $47,362 and $49,639. Particularly, a daily bar closing above the $44,681 level, which emerged as a significant resistance level in December and was seen as an obstacle in the last bar formations, will enable Bitcoin’s price to gain significant momentum.
Bitcoin Four-Hour Chart Analysis
The first noticeable formation structure in the four-hour Bitcoin chart is the contracting wedge formation. After providing important clues to investors for a while, Bitcoin managed to experience a resistance breakout, and the price continues to trade in a narrow range in the last bar closures. The direction will be determined by a support or resistance breakout during this process.
The most important support levels to follow on the Bitcoin chart are, respectively; $43,608 / $43,007 and $42,406. Especially, a bar closing below the $43,608 level, which has taken on an important role recently, will cause Bitcoin’s price to face selling pressure.
The most important resistance levels to pay attention to on the Bitcoin chart are, respectively; $44,261 / $44,749 and $45,292. Particularly, a four-hour bar closing above the $44,216 level, which has been a major obstacle in the last bar formations, will enable Bitcoin’s price to gain momentum.
