In the wake of the geopolitical issue between Russia and Ukraine, Bitcoin has shown considerable volatility over the past two months. The coin price resonates between $45000 and $33000, implying a range-bound rally in the short term. However, amid the bearish cloud hovering above the crypto market, a swiss city-Lugano makes Bitcoin, Tether, and LVGA token legal tender.
On March 1st, the Bitcoin(BTC) buyers failed their fourth attempt to overcome the $45000 in the last two months. An evening star pattern at this resistance suggested the sellers continue to defend this level with all their might.
The follow-up downfall has breached the $40000 psychological level, escalating the selling momentum. After spending a day to retest this flipped resistance, the coin price turns red today, exchanging hands at $38211.
The BTC chart shows that the coin has lost 18% in the last four days. The sufficient volume activity on the seller’s side suggests the coin would soon visit the $36000 monthly support. If sellers breach this support level as well, the bitcoin traders can expect another 8.5% fall, retesting the January low at $33000.
On a contrary note, if the shared support of $36000 and traditional pivot level(S1) bolster the buyers to regain control from the bears. Then, the coin price would surge higher to rechallenge the $45000 barrier. This formidable resistance is crucial for buyers to initiate a genuine recovery.
- Resistance level- $40000, $45000
- Support level- $36000, $33000
The recent reversal has slipped the BTC price below the(20, 50, and 100) EMAs. Moreover, a bearish alignment among these EMAs indicates a bearish tendency.
The RSI indicator slope wavering above-below the neutral line accentuates a side-way rally in price action. However, the slope currently moving below the midline suggests the bears have the upper hand.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.