Bitcoin (BTCUSD) Encounters Setback Below Channel Mid-line

BTCUSD Encounters a Setback, Causing a Drop Below $42,000

BTCUSD encounters a challenge as the price drops below the middle line of its channel. This comes despite a predominantly bullish trend throughout last month into this month. This poses a kind of threat to the ongoing bullish momentum. The market has exhibited a bullish nature for most of the year, with a brief pause from March to October. Following this, the rally resumed, reaching $47,000. However, significant resistance at this level has hindered further upward movement.

BTCUSD Key Levels
Supply Levels: $45,000, $47,570, $50,000
Demand Levels: $42,000, $39,800, $38,000

Throughout the year, the BTC market showed an upward sliding pattern within a parallel channel. Despite occasional drops below the channel, recovery within it was evident, but surpassing it proved challenging. From early December up until this month, there were several attempts to breach the upper border of the channel, but they were met with resistance, leading to a notable setback.

Presently, following multiple unsuccessful attempts to violate the upper border of the channel, the price suffered a blow, dropping below the middle line previously acting as support. Consequently, the daily candles extend the lower Bollinger Bands downward. The daily Elders Force Index (EFI) power line, consistently above equilibrium all year, has now dramatically fallen below it.

Market Expectations

Examining the 4-hour chart accentuates the impact of the setback. Candlesticks have stretched the lower Bollinger Band below the $42,000 support level. On the 4-hour EFI indicator, the line initially dropped below equilibrium during the price plunge to the middle line. As recovery efforts were underway, it has now dropped again alongside the candles below the middle line. The market pressure could drive the price further downward before any potential resurgence.

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