Bitcoin’s recent price movement has caused investors to be concerned about what could come. next. By looking at indicators like the Pi Cycle, the Golden Ratio Multiplier and the 200-week Moving Average, we are able to gain insight into possible support and resistance levels.
Do you have a tendency to be bearish?
Bitcoin has been fluctuating in price over the past few weeks. Its value dropped as low as $53,000, before stabilizing at the $50,000-$60,000 area. This bearish trend will continue if the price continues to fall. 200-week moving average heatmap This historically important support level (blueline) is now close to 39,000 dollars but quickly approaching $40.000 (whiteline). The round psychological level is also in line with the Bitcoin Investor Tool The (green line), that has also been converged to the 200-week average moving, may serve as potential targets for the downside.
Targets Nearby
Investors should keep a close eye on the levels above current price. The Pi Cycle Top Indicator The upper orange line indicates a critical resistance level of around $62,000 based on the moving average for 111 days. The Golden Ratio Multiplier The (lower orange) line indicates that during the current market cycle the 350-day average has provided a strong level of support, particularly as it is near the $52,000 technical support, and the psychologically significant $50,000.
How about more chop?
Bitcoin may very well range in price between $50,000 and $60,000. This is similar to our previous trading range of $70,000-$60,000 which resulted in a relatively stagnant market throughout 2024. Bitcoin’s outlook on the long term is promising despite recent price declines. Bitcoin’s price has fluctuated in the past before reaching new heights. It can be weeks or months before the price trend reverses. low volatility.
The conclusion of the article is:
Long-term investors should remain calm, and ignore the daily fluctuations in price. Trading too much can lead to bad decisions and loss. The key is to follow a plan, which may include accumulating stocks at levels of support or profiting at the resistance.
Bitcoin’s price hasn’t been great lately, but investors who understand the technical aspects of trading and are familiar with support and resistance points can react and prepare rather than being overly reactive to market fluctuations.
Check out this recent video on YouTube for a deeper look at the topic. Bitcoin Price Action: What to Expect Next
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Source: bitcoinmagazine.com