Read full article at CryptoPotato.

Bitcoin’s RSI has been rejected from a significant long-term trendline three times. When the RSI hit the mentioned trendline, the price plummeted sharply and was rejected. To provide prospects of positive development in terms of price, the trendline needs to get broken.

Technical Analysis

By Shayan

The Daily Chart

The $37K threshold has become a significant support level for Bitcoin, acting as a substantial hurdle for bears. If this level fails to hold, the price will likely fall to the $34K support. On the other hand, if Bitcoin is to resume its bullish trend, bulls must soon break over the 100-day moving average and restore market confidence.

3
Source: TradingView

The 4-Hour Chart

Bitcoin has reached the lower trendline of its declining mid-term channel, and it has been held by both the trendline and the $37K significant support level. On the other hand, the cryptocurrency is now consolidating below a short-term declining trendline (Yellow line) and aiming to break above it. The $42K resistance level will be breached shortly if the trendline is broken.

Furthermore, a bullish divergence between the RSI and the price indicates a reversal and a potential bullish leg ahead, increasing the probability of a breakthrough from the stated trendline.

2
Source: TradingView

Sentiment Analysis 

By Edris

Bitcoin Open Interest

Bitcoin’s price has declined over the past month, dropping more than 20%. Movements of this kind usually lead to substantial futures market flush-outs, identified by massive reductions of open interest. However, the open interest has not decreased significantly during the current downtrend, and it remains much higher than in March 2022, when Bitcoin was trading at these same prices.

Additionally, it is evident that the price has created multiple lows in the $37K zone, and the retail traders would consider this level as solid support. Therefore, it is safer to assume that many long positions are opened at these prices with stop losses and liquidation prices below the $37K level.

If the price breaks below this area, a massive liquidation cascade and rapid price drop could be expected, especially with the current high open interest compared to the market cap. The $37K level is a crucial area to watch in the next few days, as it can determine the market trend for the short term.

Source: CryptoQuant

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Categories:

Tags:

Comments are closed

Translate

Our Other Projects

EdgyBranding.com - Premium Domain Names.

Notezi.com - Social Network

ParisArtwork.org - Mid-century Paris NFTs, tokenized on the WAX blockchain.

NewYorkArtwork.org - Mid-century New York NFTs, tokenized on the Ethereum blockchain and offered on Rarible.

ClassicAutomobile.org - Classic Automobile News.

RSS
Facebook
Facebook
LinkedIn
LinkedIn