Bitcoin: Weekly Close Above $43.5K Could Spark Bullish Wave - Key Levels to Watch
Cryptocurrency markets are calmer this week after starting 2024 with volatile trading.
While there was a general pullback in crypto markets following the spot Bitcoin ETF approval last week, there is a view that the downward momentum remains limited for now.
After breaking its sideways trend since December to the upside last week, Bitcoin moved as high as $49,000 following the ETF confirmation but retreated as profit selling accelerated.
Checking the bearish movement, the cryptocurrency found support at the $41,700 band and buyers remained active at the lower band of the current channel.
In the current situation, it is seen that the intermediate resistance, which corresponds to an average of $ 43,500 in the middle of the week, was tested after maintaining the support zone extending up to $ 41,500 as Bitcoin returned to the band movement.
If the Bitcoin price closes above $ 43,500 for the rest of the week, the more critical resistance price at $ 44,000, the upper band of the channel, will come to the fore.
In this case, a weekly close above $ 44,000 can be followed as the first condition for a new bullish wave to occur.
Exceeding the $ 44,000 resistance in the short term, this time it may appear as a stronger movement than last week's bounce.
Because the Stochastic RSI on the daily chart is generating a stronger buy signal with its current position.
We'll also see Bitcoin move back into positive territory with another 3% rise from its current price, which will be priced above the short-term EMAs.
After another upside breakout of the horizontal channel, the BTC price is more likely to move toward the $50,000 region in the short term.
In the lower region, a break of the $41,500 support could lead the cryptocurrency to test
Read more on investing.com
